UK economy shrinks by 2% in first quarter, March witnesses record fall

British ecomy contracted by 2 per cent in first three months of year 2020, from January to March, signalling first direct impact of COVID-19. Office for National Statistics (ONS) said in its monthly GDP estimate that rolling three-month growth fell by 2.0 per cent, registering lowest rate since three months to December 2008 during Great Recession.

According to report, all heline sectors provided a negative contribution to GDP growth in three months to March 2020. While services sector fell by 1.9 per cent, production and construction by 2.1 per cent and 2.6 per cent respectively. Among services sector, accommodation and travel nts are hardest with 14.6 per cent and 23.6 per cent decline in respective industry.

March 2020 witnessed biggest monthly fall in GDP since series began in 1997, falling down by 5.8 per cent. However, Statistics Office has cautioned that estimates are subject to more uncertainty than usual due to challenges faced during data collection under government's imposed public health restrictions.

“ pandemic also hit tre globally, with UK imports and exports falling over last couple of months, including a table drop in imports from China,” said Jonathan Athow, Deputy National Statistician for Ecomic Statistics, in a statement.

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Furlough scheme extended

Meanwhile, British chancellor Rishi Sunak has extended job retention scheme by a furr four months until end of October to boost millions of jobs and businesses. India-origin Finance Minister said in a statement on May 12 that government, by that time, will have provided eight months of support to British people and businesses.

“This extension and changes we are making to scheme will give flexibility to businesses while protecting livelihoods of British people and our future ecomic prospects,” said Finance Minister while anuncing extension of furlough scheme from House of Commons.

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(Im credit: AP)