The UK economy shrank by 20.4% in April, marking the largest monthly decline on record after governments locked the country down over the Coronavirus outbreak.
The contraction in GDP is three times larger than the decline seen throughout the entire 2008 to 2009 financial crisis.
Bank of England Governor Andrew Bailey commented: “Obviously it’s a dramatic and big number, but actually it’s not a surprising number”. Mr Bailey also hinted that the bank would be ready to deliver further stimulus, saying, “…we have to be ready and ready to take action, not just the Bank of England, but more broadly on what we can do to offset those longer-term and damaging effects.”
The slump in April was expected to be the worst month as the lockdowns started around the 20th of March, whilst the economy began to open up in May.
Nine million UK workers are currently having their wages paid by the furlough scheme, with unemployment claims soaring by 856,000 to 2.1 million.
The UK economy is now 25% smaller than it was in February, but the worrying part is that some soothsayers are expecting a “second wave” of the virus to begin in the next two weeks.