The British economy may face the worst recession in three centuries due to monarchy crisis
The UK economy suffered its first record decline since 1979, with local homes being cut in early 2020. This has been reported by Reuters in the context of official data, including information about the initial phase of quarantine initiation in the country.
According to the Office of National Statistics (ONS), GDP declined by 2.2% from January to March, which was below the average estimate of 2.0% of economists participating in the survey. Reuters.
According to preliminary estimates by the ONS, the British economy contracted a record 20.4% in April due to the negative impact of quarantine restrictions in March. Despite some signs of recovery, the Bank of England said that the country’s economy could face the worst recession in the last three centuries this year.
Against the backdrop of a declining economy in Britain, household savings have increased due to cost cuts – the largest since the introduction of relevant figures in the 1950s. The household savings ratio increased from 6.6% to 8.6% in the first quarter compared to the 2019 results.
On 30 June, Prime Minister Boris Johnson is to set up his plan to accelerate the recovery of the British economy. It is expected that an investment of £ 5 billion will be allocated to restore the country’s infrastructure.
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We wrote earlier that Australia’s economy has slowed down. According to the Australian Bureau of Statistics (ABS), the country’s GDP fell by 0.3% in the first three months of the year – for the first time in 29 years.
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