UK economy expected to slip into recession as GDP plunges further

Britain’s economy is expected to slump worst as experts predict a GDP drop of seven per cent. The figures, which would be released mid-week, will put the country’s economy in recession for the first time since the 2008 financial crisis. As per the economists, two consecutive quarters of economic plunge are required for any country to be called under recession.

The data which would be released by the country’s Office for National Statistics on  August 12 is speculated to show that gross domestic product (GDP), the broadest measure of economic prosperity, fell in the three months to June by 21%.

A decline of 2.2 already 

Owing to coronavirus pandemic, the country’s economy has already declined by 2.2 per cent in the first quarter of the year. The upcoming figures would reveal the country’s further plunge into recession after the infection spread in March. If this quarter also shows plunge, then the economy would be qualified to be called under recession.

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The prediction comes amidst as the government is mulling to reopen the country entirely. Prime Minister Boris Johnson on August 8 insisted that schools must reopen in September with “full attendance” after the relaxation of lockdown protocols as it remains a “national priority”, according to reports. Johnson said that his administration would help schools return to full capacity by maximizing the bubble of over 15 pupils per classroom. Additionally, he ordered a public relations campaign to ensure the reopening calling it the “last place” to close despite local restrictions. 

The United Kingdom government has recalled nearly 750,000 unused COVID-19 testing kits due to safety concerns. According to international media reports, UK’s medicines and healthcare products regulator (MHRA) asked Randox to recall the kits sent out to care homes and individuals. The government is reported to have stated it as a ‘precautionary measure’ and said the risk to safety was low. 

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