UK Q2 GDP, -20.4% QoQ... Entering Economic Recession

[Asia Economy Reporter Kim Hyemin] The United Kingdom's Gross Domestic Product (GDP) in the second quarter decreased by 20.4% compared to the previous quarter.

The UK Office for National Statistics (ONS) announced on the 12th (local time) that the second quarter GDP fell by 20.4% compared to the previous quarter and by 21.7% compared to the same period last year. This decline is the largest drop since the statistics office began compiling quarterly growth rates in 1955.

The UK GDP experienced negative growth for two consecutive quarters, technically entering a recession. This marks the first recession in 11 years since the financial crisis in 2009.

The record decline is analyzed to be due to the impact of the novel coronavirus disease (COVID-19). As the spread of COVID-19 accelerated, the UK implemented lockdown measures on March 23, closing all stores except essential businesses and prohibiting unnecessary movement.