The lockdown has shut down many businesses. People aren’t coming outside, and many offices are closed up, travel is suspended. It has resulted in a decline in the world economy. All the countries are suffering. The Bank of England has warned the Citizens of the greatest recession of their times.
Bank governor Andrew Bailey told the BBC that England would suffer from a 14% recession this year. And that’s if the lockdown lifts between June – September. The longer the lockdown lasts, the higher the recession goes.
England’s economy suffered from a 3% recession in the first quarter of the year. But in the second quarter, there has been a recession of 25%. If things go back to normal in the following months.
There will be a 14% recession this year. It will be the most significant decline, according to the Office for National Statistics (ONS) data dating back to 1949.
The country has suffered the sharpest annual contraction since 1706. While the country is supposed to get back in the track by 2021, the growth of the economy will be slow. It may grow by %15, which may return it to its previous position.
Governor is worried about how the country will react to the post lockdown period. The lockdown is supposed to relax next week, and it will decide whether the citizens will return to normal.
Every family in Britain will suffer an economic hit of £9,000, that’s a considerable amount. However, the government is helping most citizens with wage subsidies, loans, and grants.