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Britain experiences worst recession since financial crisis

British economy sees worst recession since financial crisis

Official data showed on Wednesday that Britain's economy shrank at a record pace of 5.8 percent in March, with the escalation of the Corona crisis prompted the government to close most of the country to stop the spread of the virus.

In the first quarter, the economy dropped by 2 percent, as restrictions on the control of the coronavirus increased the difficulties on an already exhausted economy.

The damage that occurred in March caused the dominant service sector to shrink by 6.2 percent, manufacturing fall 4.6 percent and construction plummeted 5.9 percent.

The National Statistics Office said this is the biggest drop on a quarterly basis since the end of 2008, during the height of the financial crisis, although it is slightly below the median forecast of 2.6 percent.

GDP data for April is likely to show further declines, as British companies and consumers undergo general lockdown measures throughout the month.

Last week, the Bank of England said the economy may be heading for the most severe annual drop in gross domestic product in more than 300 years, saying a 14 percent decline is possible, followed by a 15% increase in 2021.

Moreover, Deputy Governor Ben Broadbent said on Tuesday that the Bank of England may need to further ease monetary policy to support the economy.

At press time, the GBPUSD rose by 0.11 percent at 1.2271 while the highest level recorded during the session was at 1.2301. Against the euro, the pound climbed to a high of 1.1339, while currently trading at 1.1326 levels.

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