London(jt news)The UK has officially entered its “worst ever” recession on record. Women have warned “hard times” are here after the economy suffered its biggest slump on record. New figures from the Office for National Statistics (ONS) shows domestic product GDP fell by 20.4 per cent between April to June.
The latest slump means the UK has officially fallen into recession territory for the first time in 11 years, as the impact of the coronavirus crisis on the economy is revealed. Economists consider two consecutive three-month periods where GDP falls.GDP had already fallen by 2.2 per cent between January to March.UK gross domestic product (GDP) has fallen by 20.4 per cent in the last three months.
The latest figures come as UK unemployment rose by 730,000 workers since March after another 114,000 Brits lost their jobs last month.It has been predicted that unemployment could treble to 3million this year.It is told that women are most effected during the biggest slump.
Economy experts warn domestic women that if they do not want tobe worried about their finance, they must have a look at the steps they can take to try and keep their cash safe.Following the global financial crisis that started in 2007, UK GDP fell by 6 per cent.This marked the deepest recession for 80 years.The Bank of England (BoE) uses GDP as one of the key indicators when it sets the base interest rate.
This decides how much it will charge banks to lend them money, and is a way to try to control inflation and the economy.So, for example, if prices are rising too fast, the BoE could increase that rate to try to slow the economy down. But it might hold off if GDP growth is slow.The BoE cut interest rates twice in March due to coronavirus.Base rate cuts means mortgage borrowers now typically benefit from lower rates, but at the other end of the scale savers earn less on their savings.