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The UK economy showed a record decline for 40 years, since 1979. GDP fell by a record 2.2 percent in the period from January to March this year. This writes Reuters, citing data from the office for national statistics (ONS).
One of the reasons that households reduced their spending. “The closure of most enterprises meant that people could not spend, even if I wanted to,” said Thomas Pugh, a British economist at Capital Economics. He added that to reach pre-crisis levels figures only by the end of 2020.
According to estimates by the ONS, the UK economy fell by 20.4 percent in April compared to March. Against this background, Prime Minister Boris Johnson announced on June 29 about increasing spending on infrastructure. He promised to allocate in the first phase of five billion pounds (of 6.13 billion dollars) for the maintenance of hospitals and repair roads.
According to forecasts of the Bank of England, in this year of economic decline could reach 14 percent, which is the worst figure for more than three century, that is from 1706. It is expected that the average salary in the country will decrease by two percent this year, and the unemployment rate will increase to nine percent from the current four.
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