The British economy shrank 19.8 percent on quarter in the three months to June of 2020, slightly less than a preliminary estimate of a 20.4 percent drop. Still, it remains the biggest contraction ever and the second consecutive quarterly decline in GDP, officially entering a recession, due to the COVID-19 pandemic and the government measures taken to reduce transmission of the virus. Gross fixed capital formation fell less than initially anticipated (-21.6 percent vs -25.5 percent) while both household consumption (-23.6 percent vs -23.1 percent) and government spending (-14.6 percent vs -14 percent) sank more. Private consumption accounted for more than three-quarters of the fall in GDP, reflecting the implementation of public health restrictions, the mandated closures of non-essential shops and forms of social distancing. Net external demand contributed positively as imports (-22.7 percent) fell more than exports (-11 percent).
