The UK economy was already pretty weak last year, as the global economy weakened considerably, partly due to the trade war between US and China and party because major central banks had been tightening the monetary policy pretty fast since 2016, removing much needed liquidity from markets. Now they are throwing all they have back at the economy, but it is not helping it, as the coronavirus lock-down has put te economy in a very difficult position for many countries. The UK economy contracted by  5.8% in March, while in April it dived by a massive 20.4%.

GDP Report Released by ONS – 12 June 2020

• April monthly GDP MoM -20.4% vs -18.7% expected
• March GDP MoM -5.8%
• Monthly GDP 3M/3M -10.4% vs -10.0% expected
• March GDP 3M/3M -0.1%