At least that is what the British central bank says as a result of the Corona pandemic, which has not experienced a more severe recession since its founding some 325 years ago. Even according to the “Süddeutsche Zeitung“ (SZ) there is no more positive balance, because if you look at the second quarter you see a slump of 25 percent and an unemployment rate of 9 percent.
A recovery is only slowly realistic after the lockdowns. Even British Prime Minister Boris Johnson does not yet have any clear plans regarding further steps in the crisis. According to the British media, however, he will only make a rather minor announcement on liberalisation. The aviation and tourism industry, the hotel and restaurant industry, the retail trade and companies that had already had economic problems before the crisis are particularly hard hit by the recession.
According to the British central bank, private consumption has suffered a 30 percent slump since the lockdown. This does not mean, however, that households literally hoard their money. The guardians of the currency of all banks believe that loans should definitely continue to be granted. The low key interest rate of 0.1 % will be maintained, but a change in the form of monetary policy intervention could be necessary at any time, according to the BoE. Programs to support citizens and businesses already existed in March.
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