UK economy shrank by colossal 20.4% in April

LONDON (AP) — The British economy has seen nearly two decades worth of growth wiped out in a single month as a result of the lockdown measures put in place during the coronavirus pandemic. The Office for National Statistics said Friday that the economy shrank by a colossal 20.4% in April, the first full month that the country was under lockdown to contain the spread of the virus. “This startling fall in activity takes output in April back to around its level in July 2002,” said James Smith, research director at the Resolution Foundation. But hopes that the bounceback in the economy will be as strong as the slide have receded given that many restrictions, such as on social contact, are set to remain in place so long as the pandemic is a threat to a public health. Frances O’Grady, general secretary of the umbrella Trades Union Congress, said targeted support for hard-hit sectors of the economy is needed, as well as a jobs guarantee to help those who lose work. Treasury chief Rishi Sunak has said that from August, firms will have to start making contributions to the salaries of workers that are retained but not working, and that the scheme will close two months later.