BRITS ARE BACK IN A RECESSION

Covid triggers 21% downturn in economy

BRITAIN will be officially declared in recession for the first time since the 2008 financial crash.

Figures are set to show the Covid-19 crisis triggered a record economic slump.

The dramatic 21% downturn between April and June – the worst in western Europe – is due to be confirmed by the Office for National Statistics today after a 2.2% fall in the first three months of 2020.

A recession is defined as two successive quarters of decline in gross domestic product, which has not been seen in the UK since 2008.

It comes after separate data showed about 730,000 jobs have been lost since March, with department store group Debenhams revealing yesterday it will cut 2,500 more jobs. Job losses between May and June were the highest in a quarter since 2009.

But experts will be examining closely the monthly figure for June – with predictions it will show a sharp 8% rebound in economic activity.

Philip Shaw, chief economist at Investec Bank, said: “We are forecasting a monthly increase of 8.1% as more of the economy, such as non-essential retailing, opened up in mid-june.”

Debenhams’ latest cuts were on top of the 4,000 announced since May.

Shop workers’ union Usdaw said it was preparing a legal challenge.

Debenhams fell into administration in April after struggling even before the pandemic. Lenders will be waiting to see how it performs post-lockdown and in the crucial Christmas trading period.

The British Retail Consortium said the number of high street shoppers was still down significantly with buyers instead going online. WH Smith, DW Sports, John Lewis, Marks & Spencer, Boots and Selfridges have all cut jobs.