UK enters recession following biggest ever economic shrinkage

(Title Image: The Guardian)

The UK officially entered a recession for the first time since the 2008-09 financial crisis after economic output shrank by a record 20.4% during the second quarter of 2020.

There are signs the recession may be short-lived, with economic growth being recorded during May and June as Covid-19 pandemic lockdown restrictions were eased.

The impact on unemployment will likely be delayed, with unemployment in Wales falling as of August 2020 and also with the UK Government’s  furlough scheme set to end in October.

UK Chancellor, Rishi Sunak MP, said the UK was grappling with an “unprecedented” situation and that the UK had fared worse than many other European nations because a larger part of the UK’s economy was focused on retail and other services.