The British Economy Contracted By 2.2% In The First Quarter Of 2020.

According to the ONS, the British economy contracted by 2.2% in the first quarter of 2020 due to the economic impact of the new coronavirus epidemic. ONS also said that in March, GDP in the United Kingdom dropped by 5.8%, while in the UK GDP fell by 20.4% in April.

According to ONS, public spending on car sales, restaurants, hotels, clothing and footwear has dropped significantly, and the cash flow has been reduced by 9 billion 500 million. Between the fourth quarter of 2019 and the first quarter of 2020, household consumption expenditure dropped by 2.7%. The household savings rate (the average percentage of disposable income of savings) grew from 6.6% in the previous quarter to 8.6% in the first quarter.

ONS said that the impact of the "closed city" resulted in a drop of 2.3% in the first quarter and 0.4% in the service sector, which accounted for 80% of the UK's economic output. As the factory closed, production output fell by 1.5%, while the closure of construction sites resulted in a 1.7% decline in construction area.

The decline in public services has also exceeded the previous estimate. In the first quarter, health and social work output in the first quarter decreased by 4.2%, while education production decreased by 6%.

In the first quarter, the government's inflation adjusted spending dropped by 4.1% as a result of reducing public services and closing schools and unnecessary retail establishments.