Since the COVID-19 outbreak, there has been wide speculations about the likely impact on our economy. The latest GDP figures released in May 2020 now confirms some of those theories and unsurprisingly the UK shrunk by 2% during Jan-March.
This is the sharpest quarterly decline since the peak of the 2008 Financial crisis, although its only thought to be the tip of the iceberg as some commentary suggests that GDP could retract by as much as 25% between April – June, which would reflect the the deepest recession in hundreds of years.
GDP is used as a measure of the size and health of an economy over a period of time. It’s measured by taking several factors into account such as; total value of goods and services produced, income and household spending.