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UK economy shows biggest drop in 40 years in early 2020

Christian Fernsby ▼ | June 30, 2020
Britain’s economy shrank by the most since 1979 in early 2020 as households slashed their spending, according to official data that included the first few days of the coronavirus lockdown.
Spending   UK
Gross domestic product dropped by a quarterly 2.2% between January and March, the Office for National Statistics (ONS) said.

Topics: Economy UK

Tuesday’s figures which build on previously released data for the first quarter showed a surge in household saving as their spending collapsed by the largest amount, in cash terms, since records began in the 1950s.

The household savings ratio shot up to 8.6% in the first quarter from 6.6% at the end of 2019.

The ONS also said Britain’s current account deficit widened by more than expected in the first three months of 2020.