The European Commission (EC) has revised its economic forecasts for the next year, now suggesting that the Eurozone recession will be more severe than they had originally thought. A separate study points out that unemployment numbers across the continent could also rise significantly in 2020.
What Have They Predicted?
The number of new job losses across the UK has led to fears that the unemployment numbers will continue to break records while we wait for the economic recovery to take place. This isn’t just a British issue though, as most countries are now seeing the damaging effects of the lockdown in their economies.
The Latest Numbers
In the last few days, the UK has seen an increase in the number of job losses suffered. Over 12,000 people fell out of employment in just 48 hours, as more companies feel the effects of the struggling economy and lower consumer demand.
The latest figures have revealed that the British economy suffered a bigger contraction in the first three months of 2020 than had been expected. However, it is hoped that a v-shaped recovery will be seen in the rest of the year.
The Latest GDP Figures
New figures show that the country’s GDP plunged by 2.2% in the first quarter of 2020. This was the biggest drop in more than four decades, and was due to the economy being virtually shut down once the coronavirus pandemic appeared.
After weeks of economic gloom, the lifting of certain restrictions in the UK has coincided with encouraging data from June to date. Could the recovery turn out to be faster than expected?
What Has Happened in June?
The IHS Markit figures for this month show a UK PMI of 47.6. This is still below the crucial 50 mark, but it contrasts to sharp falls in previous months. For example, in May the PMI was just 30.
The Bank of England has boldly moved to stimulate the country’s economy, by expanding quantitative easing but leaving interest rates at their current levels. The former is tactic that sees extra money pumped into the financial system through the buying up of Government bonds.
What Have They Agreed?
New figures show how deeply the UK’s employment situation has been affected by the lockdown. With payroll numbers dipping by 600,000 workers, there are fears over how high the unemployment rate could climb. Some critics of the lockdown measures suggest that the 2-metre distancing rule needs to be relaxed or it will lead to further, substantial job losses.
A Look at the Numbers
ACM, established in March 2000, continues to be rated as a credit worthy business by leading providers of commercial credit information and is a member of the International Association of Credit and Collection Professionals.
