Gross domestic product fell 19.1% in the United Kingdom from March to May compared to the period from December to February, due to the impact of the coronavirus, with a slight rebound of 1.8% in May.
Despite this very shy improvement, the GDP remains a quarter lower than its level in February, before the crisis due to the coronavirus does not fully hit the British and world economy, said Tuesday the National Office of Statistics (ONS) . Between March and May, the services sector contracted in particular by 18.9%, and the construction sector by 29.8%.
From the very first measures to partially lift the containment in mid-May, “Manufacturing production and housing construction have shown signs of recovery, with some companies having returned to work”, underlines Jonathan Athow, statistician of the ONS quoted in the press release.
In the service sector, which accounts for 80% of the UK economy, “We have observed a rebound in distribution, with a record online sales in particular”, he adds. However, with movement restrictions and containment introduced on March 23 still largely in place in other areas in May, “Many areas have seen their activity decline further”, he specifies.
Coronavirus and threat of Brexit without agreement
Shops considered non-essential reopened in June and restaurants, bars, or hotels, cinemas and museums received government approval for early July. Not all of them have resumed their activity, compulsory distancing measures in their precincts sometimes compromising their profitability prospects.
Sports halls may reopen later this month, but some sectors, including concert halls or convention centers, are still forced into inactivity and many warn that they risk bankruptcy.
For analysts of the Capital Economics cabinet interviewed by Agence-France-Presse, the 1.8% rebound in the economy in May is “A disappointing first step on the road to recovery and suggests that hopes for a rapid rebound in containment are not realistic”.
The British economy finds itself in a particularly difficult situation compared to that of other countries, because to the shock of the coronavirus is added the threat of a Brexit without agreement: the countdown to find a compromise with Brussels before the outcome the transition period at the end of December is becoming more and more pressing and negotiations between London and Brussels are deadlocked.
Three-quarters of British businesses are not ready for Brexit, according to a study released Monday by the Institute of Directors (IoD, a business organization for business owners, business leaders and entrepreneurs).
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