UK records -2% growth in Q1... 'Q2 expected to worsen'

[Asia Economy Reporter Naju-seok] The UK economy recorded a -2% (quarter-on-quarter) growth rate in the first quarter of this year.

On the 13th (local time), the UK Office for National Statistics announced that the UK economy experienced negative growth from January to March this year. Foreign media emphasized that this is the lowest growth rate since the global financial crisis began in 2008.

However, the UK economic growth rate was relatively better than the market expectation of -2.5%. It also appears to have performed better than the Eurozone's first-quarter growth rate of -3.8%.

Nonetheless, a further decline in the UK economic growth rate is expected. Unlike some European countries that implemented lockdown measures starting in January this year, the UK only began full-scale lockdown measures to curb the spread of COVID-19 from March.

A UK Department of Business official stated, "The impact and speed of COVID-19 on the UK economy are unprecedented," adding, "A larger decline is expected in the second quarter."

Looking at the monthly data, the UK economy is estimated to have contracted by -5.8% in March compared to February.

Earlier, the Bank of England (BOE) predicted that the UK economy could shrink by -14% this year.