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Britain’s economy contracts 20.4% in April

Britain’s economy contracts 20.4% in April

The British economy contracted 20.4 percent in April, biggest contraction since records began in 1997, due to the restrictions imposed by the government to contain the Covid-19 pandemic.

Analysts had predicted an 18.6 percent drop, following a 5.8 percent fall in March, where the economy shrank 10.4 percent in the quarter ended April.

The services sector plummeted 19 percent, industrial production sagged 20.3 percent and construction output saw a whopping 40.1 percent contraction.

“The monthly decline in GDP in April 2020 is three times greater than the fall experienced during the 2008 to 2009 economic downturn,” the ONS said. During the global financial crisis, from the peak in February 2008 to the lowest point of March 2009, a total of 13 months, GDP contracted 6.9%.

At press time, the GBPUSD traded higher at 1.2630 after hitting a bottom of 1.2545, the lowest since June 4. 

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