Gross domestic product in the UK suffered a record monthly fall in March, dropping 5.8 per cent month-on-month as the impact of lockdown measures put in place to stop the spread of the coronavirus kicked in.
The economy shrank 2 per cent over the course of the first quarter, with almost all sectors reporting declines, according to the Office for National Statistics. The accommodation and food services sector was particularly hard hit, dropping 9.5 per cent over the three-month period.
“With the arrival of the pandemic nearly every aspect of the economy was hit in March, dragging growth to a record monthly fall,” said Jonathan Athow, the ONS’s deputy national statistician for Economic Statistics.
“Services and construction saw record declines on the month with education, car sales and restaurants all falling substantially,” Mr Athow said, adding that global trade was also affected with both imports and exports declining. The balance of payments gap narrowed as imports fell by £13.3 billion (Dh59.96bn), but exports dropped by £12bn.
The UK has rolled out monetary and fiscal measures aimed at softening the blow caused by measures taken to stem the spread of the pandemic, with the Bank of England cutting interest rates to 0.1 per cent and embarking on an asset purchase programme that is on track to buy £645bn worth of treasury and corporate bonds by July.
The government has also pledged to guarantee lending to small and medium-sized businesses and on Tuesday announced it would extend a scheme to pay up to 80 per cent of furloughed workers’ wages to a value of £2,500 per month until October.
However, despite these measures the Bank of England is forecasting a 25 per cent quarterly decline in GDP for the three months to June.
“The UK economy was hit hard by the necessary shutdown at the end of March, and recent data suggests the full impact of that difficult decision is still yet to come,” said Rain Newton-Smith, chief economist for the Confederation of British Industry - a trade body representing larger companies.
“The range of financial support for businesses and workers provided by the government has been a lifeline for many firms so far. These schemes are critical in keeping companies afloat and they will need to adapt as the economy restarts,” Ms Newton-Smith added.
The FTSE 100 index traded 1.4 per cent lower by 1.33pm UAE time, but the pound was trading up 0.23 per cent against the dollar at $1.2288.
Currency traders are more focused on “forward-looking factors such as the prime minister’s three-stage plan to open the economy”, said Naeem Aslam, chief markets analyst at Avatrade.
“What is important to keep in mind is that today’s GDP number isn’t the true reflection of the economy because it has captured only nine days of the national lockdown,” Mr Aslam said.
Jasper Lawler, head of research at London Capital Group, said: "The current quarter is where the real concern lies.
"Confusion over the UK’s exit from lockdown matters more than a record contraction in March."
SPECS
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Champion%20v%20Champion%20(PFL%20v%20Bellator)
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What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
COMPANY PROFILE
Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.
SUNDAY'S ABU DHABI T10 MATCHES
Northern Warriors v Team Abu Dhabi, 3.30pm
Bangla Tigers v Karnataka Tuskers, 5.45pm
Qalandars v Maratha Arabians, 8pm
The specs
Engine: 2.4-litre 4-cylinder
Transmission: CVT auto
Power: 181bhp
Torque: 244Nm
Price: Dh122,900
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
BLACK%20ADAM
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AT%20A%20GLANCE
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
RIVER%20SPIRIT
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3ELeila%20Aboulela%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Saqi%20Books%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20320%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Favourite place to Travel to: Vienna
Favourite cuisine: Italian food
Favourite Movie : Scent of a Woman
Company%C2%A0profile
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SPECS
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