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The UK economy has suffered its biggest recession in 11 years. The country's economy has shrunk dramatically.
According to the US National Bureau of Economic Research, the recession in the country began in February. In the first quarter, the GDP fell by 5 percent. In the second quarter, it decreased by 32.9 percent.
The European Union is facing the biggest economic crisis in history due to the Corona As it turns out, the economic situation in this bloc is getting worse than expected.
When the economy goes into recession
In normal times a country's economy continues to grow. Its citizens, the price of goods and services produced in the country, that is, with the increase in gross domestic product, income also increases slightly. However, sometimes the prices of manufactured goods and services go down. If the various important indicators of the economy go down in a few consecutive quarters of a financial year, then the signs of recession are mainly feared. Instead of expanding important indicators of the economy, including gross domestic product (GDP), industrial production, and the job market, the fear is compounded by signs of contraction.
Countries in recession
The UK economy has suffered its biggest recession in 11 years. The country's economy has shrunk dramatically. In the second quarter of the year (April-June), the economy contracted by 20.4 percent compared to the first quarter. Household spending has fallen as shops have closed, factories and construction have also shrunk, pushing the UK into the first strategic recession since 2009. Strategic recession means economic contraction in two consecutive quarters.