WORLD: The global coronavirus pandemic pushed Britain into its deepest-ever recession, data showed yesterday (Aug 12).
Thursday 13 August 2020, 08:31AM
Britain’s economy shrank more in the second quarter than any other country in the Group of Seven. Photo: AFP
The British economy - the world’s seventh in size - contracted by an unprecedented 20.4% in the period from April to June, far worse than any of its European neighbours and also well below the so-called Group of Seven richest countries in the world.
By comparison, France’s economy contracted by 13.9% in the second quarter, Canada 12%, Germany 10.1%, the United States% and Japan 7.6%.
The news that the virus has knocked down a fifth of its economy came as Britain continues to grapple with one of the highest death tolls in the world from the pandemic, which some observers blame on the government’s early dithering over the imposition of strict confinement measures.
Nevertheless, the subsequent lockdown brought activity shuddering to a halt particularly in the key services, production and construction sectors.
“It is clear that the UK is in the largest recession on record,” said the Office for National Statistics, which compiles the data.
Even if some experts are still predicting a “V-shaped” rebound, Britain’s economic woes could not come at a worse time as it still has to reach a trade deal with the EU following its exit from the 27-country bloc.
Experts agree that the absence of any trade deal with the EU would only further exacerbate Britain’s problems.
Second wave looms
On the other side of the world, New Zealand confirmed its first virus outbreak in over three months which prompted Prime Minister Jacinda Ardern to place Auckland into lockdown.
Four new cases were confirmed in Aucklund on Tuesday with the lockdown introduced for the next three days in an effort to contain the possibility of the virus spreading elsewhere.
Strict social distancing and limits on gatherings have been reimposed on the rest of the country, threatening an economic recovery.
Prime Minister Ardern also warned the upcoming election in September could be postponed as the coronavirus re-enters the Pacific country.
With 1.5 million people under stay-at-home orders, and millions more at risk of a wider outbreak, Ardern said she was seeking advice on delaying the election currently scheduled for Sept 19.
Parliament was due to be dissolved yesterday to allow the election to take place, but the centre-left leader held off the move until Monday to monitor how the crisis evolves.
“At this stage, it’s too early to make any decision but this means there is some flexibility if required,” said Ardern, who is well ahead in opinion polls and expected to win a second term.
With the number of coronavirus cases worldwide surpassing 20 million and the number of deaths fast approaching 750,000, the World Health Organization (WHO) has warned that a second wave is “almost inevitable”.
So, with no vaccine still in sight, countries across the globe are starting to reintroduce restrictions as the number of infections tick higher.
In Belgium, which is battling one of the most serious coronavirus outbreaks in Europe, authorities made the wearing of face masks in public compulsory in the Brussels region as of yesterday. Belgium has one of the highest per capita death rates from COVID-19 in the world and infections are again rising after earlier success in bringing the epidemic under control.
In Italy, too, regions have begun to order new quarantines for people returning from higher-risk European countries such as Spain and Greece, as they hope to stem new outbreaks of coronavirus.