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Money Great Britain: economy slumps by 20 percent

19:20  30 june  2020
19:20  30 june  2020 Source:   de.euronews.com

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  Großbritannien: Wirtschaft bricht um 20 Prozent ein © Provided by Euronews

Great Britain's economic performance plummeted as a result of the Corona crisis. In the first three months of the year, gross domestic product shrank by 2.2 percent in a quarterly comparison. Analysts had only expected a drop of 2.0 percent.

Government puts together stimulus package

As the national statistics office ONS announced according to another estimate, the decline was more pronounced than previously thought. But it is not as violent as the economic downturn in the euro zone.

Prime Minister Boris Johnson has now announced a multi-billion stimulus package to get the economy going again. In the short term, the government plans to invest the equivalent of around € 5.5 billion (£ 5 billion).

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This moment also gives us the great opportunity for radical changes. To rebuild everything and be braver in the future.

The entire potential of the country is used. We will make this country safer, we will build hospitals, schools and universities. But we will also be more sustainable.

Boris Johnson Prime Minister Great Britain

Over the next eight years, around 13.1 billion euros (£ 12 billion) will flow into the creation of affordable housing, according to the conservative politician.

According to the Bank of England, from early June, Britain's economy may have contracted 20 percent in the first half of the year.

The slump is the biggest setback for the UK economy since the severe financial crisis in 2008 and 2009. In the euro area, economic output declined by 3.6 percent in the first quarter.

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