United Kingdom (UK) today officially entered the recession as the country’s financial figures confirmed it had undergone two successive Growth Domestic Product (GDP) contractions.
The GDP has been dropping at a rate of 1.5%, the worst drop it encountered for more than 2 decades, with the British Prime Minister, Gordon Brown, describing the present financial situation as “like no other”.
Almost every financial sector is badly affected with the disastrous economy, with banking, manufacturing and services leading as the worst losers. Gordon Brown is ready to announce its second multi-billion economic stimulus plan in months, mainly targeted to bail out the ailing banking and financial sector.
Workers in Britain continue to lose their job, with the unemployment figure expected to reach 2 million by the time the year 2010’s curtain opens. At times, more than 1,000 people lost their job in one day, as demonstrated by the demise of Lehman Brothers, once a mighty player in the investment banking industry. Even retail giant Woolworth’s ended up closing all their shops for good. As for the fresh graduates, most will have a long summer, a period they certainly want to forget quickly.
What started as an assuming sub-prime crisis in the US eventually set off one of the biggest market failures, bringing down the most powerful economies in the world including America, Japan and the European region. The Sterling plunged to a 23-year low against the US Dollar, pitting at $1.36.
The last time UK’s economy was severely affected was in the 1980s, during which Margaret Thatcher, the country’s first Prime Minister, was in charge.