UK in deep recession as GDP plunges 20% in Q1

LONDON: The UK economy plunged into a deep recession as it shrank 20.4% between April and June at the height of the coronavirus lockdown, shows data.

Reacting to the Office for National Statistics (ONS) data, UK Chancellor Rishi Sunak admitted that it indicated that the "hard times" had warned about are here and that many more jobs will be lost.

"I've said before that hard times were ahead, and today's figures confirm that hard times are here," Sunak told 'Sky News'.

"Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will. But while there are difficult choices to be made ahead, we will get through this, and I can assure people that nobody will be left without hope or opportunity," he said.

It marks the first time in 11 years that the UK has tipped into a recession, which is defined by two consecutive three-month periods of falling GDP. The latest GDP figures released by the ONS showed that it fell by 20.4% between April to June, following a drop of 2.2% between January to March.

"The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record," said Jonathan Athow, Deputy National Statistician at the ONS.

"The economy began to bounce back in June, with shops reopening, factories beginning to ramp up production and house-building continuing to recover. Despite this, GDP in June still remains a sixth below its level in February, before the virus struck," said Athow.