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Updated 13 Aug, 2020 10:17am

Virus pushes Britain into record recession; NZ mulls over election delay

LONDON: The global coronavirus pandemic pushed Britain into its deepest-ever recession, data showed on Wednesday, as New Zealand warned the re-emergence of Covid-19 could delay its upcoming election.

The British economy — the world’s seventh in size — contracted by an unprecedented 20.4 percent in the period from April to June, far worse than any of its European neighbours 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 United States 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 Office for National Statistics, which compiles the data.

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 the coronavirus seems to have re-entered 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 centre-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.

With the number of coronavirus cases worldwide surpassing 20 million and the number of deaths fast approaching 750,000, the World Health Organisation has warned that a second wave is “almost inevitable”.

Countries across the globe are starting to reintroduce restrictions as the number of infections tick higher.

In Belgium, which is battling one of the most serious coronavirus outbreaks in Europe, authorities made the wearing of face masks in public compulsory in the Brussels region from Wednesday.

Belgium has one of the highest per capita death rates from Covid-19 in the world and infections are again rising after earlier success in bringing the epidemic under control.

In Italy, too, regions have begun to order new quarantines for people returning from higher-risk European countries such as Spain as they hope to stem new outbreaks of coronavirus.

Published in Dawn, August 13th, 2020

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