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UK economy shows biggest drop in 40 years in early 2020

Christian Fernsby |
Britain’s economy shrank by the most since 1979 in early 2020 as households slashed their spending, according to official data that included the first few days of the coronavirus lockdown.

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Topics: ECONOMY    UK   

Gross domestic product dropped by a quarterly 2.2% between January and March, the Office for National Statistics (ONS) said.

Tuesday’s figures which build on previously released data for the first quarter showed a surge in household saving as their spending collapsed by the largest amount, in cash terms, since records began in the 1950s.

The household savings ratio shot up to 8.6% in the first quarter from 6.6% at the end of 2019.

The ONS also said Britain’s current account deficit widened by more than expected in the first three months of 2020.

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