Monthly GDP growth of the UK 2010-2020

In November 2020 the gross domestic product of the United Kingdom fell by 2.6 percent, the first time GDP has fallen since April 2020, when the economy contracted by a record 18.8 percent. This dramatic drop in growth occurred due to the global outbreak of Coronavirus, and the unprecedented public health measures enforced to contain the spread of the virus. As a result, several businesses have closed temporarily or even collapsed completely as a result of the economic damage.

Over 9 million workers put on furlough

  In an effort to limit the inevitable damage to the labor market, the UK government introduced a scheme whereby they will temporarily pay 80 percent of an employees' wages, up to 2.5 thousand pounds a month, provided they are kept on the payroll of their respective employers. As of August 2, 2020 there were around 9.6 million jobs furloughed out, and put onto this job retention scheme.

 When will the economy recover?

  With so many unknowns regarding the Coronavirus (COVID-19) pandemic it is difficult to say when the economy will recovery, and how strong that recovery will be. According to forecasts from the European Commission, all of Europe's economies will suffer a deep recession in 2020, followed by a return to growth in 2021. For the UK specifically, GDP will fall by 8.3 percent over the whole of 2020, with an annual growth rate of six percent expected in 2021.