Jason Hollands, the Managing Director at Tilney, broke down how these figures came about: “The latest OECD report, for the second quarter, is yet another reminder of the huge economic cost of the lockdowns.
“While UK GDP experienced the biggest drop of any G7 economy in Q2 this year; this was in part a timing issue as the UK was hit by the pandemic later than the likes France and Italy and who consequently had a much worse Q1 than the UK.
“Most of the dramatic contraction highlighted by the OECD report took place in April and since May UK GDP has been growing again, accelerating in June once lockdown restrictions were eased.
“Although the recovery is underway and the next quarter should be positive, the challenges are huge and rising unemployment is a real concern, especially once the furlough scheme ends in October. This could dent the consumer-led recovery.”
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