UK Economy Suffers Worst Recession on Record Amid Covid-19 Pandemic

The UK economy suffered its steepest recession on record in 2020 due to the Covid-19 pandemic. The country's output fell by nearly a fifth in April, and overall GDP plummeted by 18.8% between April and May.

Interest rates were slashed to an all-time low of 0.1%, and the Bank of England fired up the money-printing presses with £200 billion of quantitative easing (QE). The total QE has now reached a mammoth £895 billion.

The economy was already under pressure from Brexit fears and a year-end election, but the pandemic delivered a sharp and large shock. Howard Archer, chief economic adviser to the EY Item Club, predicts that growth may not exceed 5.5% in 2021.