Economic woes for UK as NZ considers later election date
The global coronavirus pandemic pushed Britain into its deepest-ever recession, data showed Wednesday, as New Zealand warned the reemergence of COVID-19 could delay its upcoming election.
The British economy – the world’s seventh largest in size – contracted by an unprecedented 20.4 percent in the period from April to June, far worse than any of its European neighbors and also well below the so-called Group of Seven richest countries in the world.
By comparison, France’s economy contracted by 13.9 percent in the second quarter, Canada by 12 percent, Germany 10.1 percent, the US 9.5 percent and Japan 7.6 percent.
The news that the virus has knocked down a fifth of its economy came as Britain continues to grapple with one of the highest death tolls in the world from the pandemic, which some observers blame on the government’s early dithering over the imposition of strict confinement measures.
Nevertheless, the subsequent lockdown brought activity shuddering to a halt particularly in the key services, production and construction sectors.
“It is clear that the UK is in the largest recession on record,” said the UK’s Office for National Statistics.
Even if some experts are still predicting a “V-shaped” rebound, Britain’s economic woes could not come at a worse time as it still has to reach a trade deal with the EU following its exit from the 27-country bloc.
Experts agree that the absence of any trade deal with the EU would only further exacerbate Britain’s problems.
On the other side of the world, New Zealand’s Prime Minister Jacinda Ardern said the upcoming election in September could be postponed as coronavirus seems to have reentered the Pacific country.
With 1.5 million people under stay-at-home orders, and millions more at risk of a wider outbreak, Ardern said she was seeking advice on delaying the election currently scheduled for September 19.
Parliament was due to be dissolved on Wednesday to allow the election to take place, but the center-left leader held off the move until Monday to monitor how the crisis evolves.
“At this stage, it’s too early to make any decision but this means there is some flexibility if required,” said Ardern, who is well ahead in opinion polls and expected to win a second term.
A pedestrian walks past shuttered shop fronts on an empty shopping street in London amid the COVID-19 pandemic on Wednesday. Photo: AFP
