Article 556E3 UK economy hit by sharpest fall in 41 years amid Covid-19 crisis

UK economy hit by sharpest fall in 41 years amid Covid-19 crisis

by
Larry Elliott Economics editor
from on (#556E3)

GDP figures show impact of coronavirus pandemic was worse than first thought

Britain's economy contracted by 2.2% in the first three months of 2020 - its sharpest decline in more than 40 years - as the immediate impact from the Covid-19 pandemic provided an even more severe hit to output than first thought.

Fresh data from the Office for National Statistics showed that gross domestic product fell by 6.9% in March, even though the government-imposed lockdown only came into force with nine days left of the month.

The coronavirus lockdown has prompted some of the UK's most prominent companies to announce large-scale job losses. The aviation, automotive and retail sectors have been among the worst hit, as businesses adjust to dramatically reduced revenue projections.

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