Coronavirus: The economic damage to the UK is worse than the first thought

Coronavirus: The economic damage to the UK is worse than the first thought

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Consumer spending fell sharply at the end of March, ONS reported

Official figures show that the UK economy contracted more than previously thought between January and March, with 2.2% of contracts falling in the largest collective collapse since 1979, according to official figures.

The Office for National Statistics (ONS) revised the initial estimate of a 2% contraction, with all major economic sectors declining.

There was a significant economic impact in March, as the effects of the coronavirus epidemic began.

This information comes as the Prime Minister prepares for a keynote speech on economics.

Jonathan Atho, sub-national statistician at ONS, said: “The first quarter shows a more detailed picture of our economy, with GDP shrinking slightly from the first estimate.

“Data from the government shows that health activities have declined more than we have shown before.

“All major sectors of the economy contracted significantly in March due to the effects of the epidemic.”

As a result of the contraction of the first quarter, the collective is now the largest drop since the period July-September.

Mr Atho said: “The sharp fall in consumer spending at the end of March led to a significant increase in household savings.”

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However, after the coronavirus lockdown takes effect on March 23, the second quarter will see a complete loss of the economy.

Recent ONS monthly figures show that the economy contracted by 20.4% in April – the biggest drop in a single month since the record began.

During the entire economic downturn from 2008 to 2009, the amount of contraction was three times higher.

Later Tuesday, Boris Johnson is set to deliver a keynote address on the economy, promising to “build better.”

Speaking in the West Midlands, the prime minister said he wanted to use the coronavirus crisis “to address the country’s major unresolved challenges.”

As part of his hopes of calling it a “new deal,” Mr Johnson plans to speed up £ 5 billion to spend on infrastructure projects.

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