UK Records Economic Decline During Pagebluk

Photo illustration (Heidi Fin / Unsplash)

JAKARTA - The British economy slumped by 20.4 percent in April this year due to the key policy during the COVID-19 outbreak. The data just released today shows one of the record lows for a weaker British economy.

In the three months to April, UK gross domestic product contracted by 10.4 percent from the previous quarter, according to the UK's National Statistics Agency. Meanwhile, according to a Reuters poll of economists have determined the average monthly decline to reach 18.4 percent.

"In line with many other economic situations around the world, the coronavirus is having a severe impact on our economy," said Finance Minister Rishi Sunak.

The government's economic net policies, including laid-off workers' pay schemes, in addition to grants, loans and tax breaks for strategic British companies, "have the best chance of recovering quickly when the economy reopens," he said.

Next week, it is planned that the UK retail sector will reopen, provided that health protocols such as social distancing are followed. The manufacturing and service sectors were the most affected by this economic downturn. They decreased by 24 and 19 percent, respectively.

The Bank of England (BoE) and the State Budget Agency have warned that Britain could head for its worst recession in three centuries. BoE Governor Andrew Bailey said he could see signs of economic recovery since the key policy was relaxed. However, he warned there was still the possibility of long-term economic damage.

The same tone came from the Organization for Economic Co-operation and Development (OECD). The organization said Britain was on the corridor to the worst economic downturn among OECD countries with an estimated economic contraction of 11.5 percent this year.