If was the year of the Great Frost then economic historians will remember as the year of the Great Pandemic. Everything that has happened to output has been related to Covid Overall, the economy as measured by gross domestic product fell by 9. At least for now, because runs reasonably close as an economic horror show, and at this stage the Office for National Statistics is only giving its first growth estimates.
Upward revisions are possible when more data comes in, but according to the Bank of England nothing like has been seen since Queen Anne was on the throne in the early 18th century. PM warns of 'long, long way to go' for UK economy.
This video can not be played To play this video you need to enable JavaScript in your browser. Rishi Sunak: "We're grappling with something unprecedented". How are ordinary people being affected? Image source, Kate Treglown. Jobless in the pandemic: 'It's hard to stay positive' How can I find a new job? Is there any sign of things getting better? Which parts of the economy have suffered most? How could a recession affect me? Is there such a thing as a 'good' or 'bad' recession?
What is the government doing about it? How are businesses coping? What are other people saying? How does the UK compare with other nations? View comments. Related Topics. This has pushed yields available on assets that compete with equities and discount rates used to reduce the present value of future corporate cash flows to extremely low levels.
Against this backdrop, the appeal of equities has grown, and we expect them to be the top-performing asset class over the coming twelve months.
Capital and income are at risk. Past performance is not a guide to future performance. Investment values may increase or decrease as a result of currency fluctuations. No investment is suitable in all cases and if you have any doubts as to an investment's suitability then you should contact us.
The opinions expressed in this publication are not necessarily the views held throughout Brewin Dolphin Ltd. The information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.
Start talking to us today about your future financial plan and we can help you make sure it is a resilient one. Book free consultation today. Home Insights The UK economy is officially in recession.
Today measuring the economy is a lot more sophisticated. The ONS reports monthly GDP figures with a short lag, and during the pandemic has been providing more timely snapshots with the help of traffic usage, retail footfall and Google searches. The closest the UK has been to a double-dip recession since the mids was in the early s when the ONS initially reported a second two-quarter fall in output after the arrival in power of the Conservative-Liberal Democrat coalition government but found later that the economy had performed better than initially feared.
Gross domestic product GDP measures the total value of activity in the economy over a given period of time. Put simply, if GDP is up on the previous three months, the economy is growing; if it is down, it is contracting.
Two or more consecutive quarters of contraction are considered to be a recession. GDP is the sum of all goods and services produced in the economy, including the service sector, manufacturing, construction, energy, agriculture and government. Several key activities are not counted, such as unpaid work in the home. Economists are concerned with the real rate of change of GDP, which accounts for how the economy is performing after inflation.
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