Hospitality ‘worst hit’ by pandemic as UK officially enters recession

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The COVID-19 outbreak and subsequent lockdown has caused the UK’s first recession in 11 years, with hospitality being the ‘worst hit’ after the coronavirus pandemic.

This is according to new data from the Office for National Statistics (ONS) this morning, officially confirming that the UK economy is in recession.

The economy fell by 20.4% during Q2 between April to June, when the country was in lockdown due to the coronavirus pandemic, compared with the three months from January to March in Q1, which fell by 2.2%.

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This is the biggest quarterly decline since comparable records began in 1955. It also reported that no other G7 nation has seen its GDP take such a devastating hit during Q2.

The figures show that F&B service businesses have been the hardest hit during this quarter, recording a decline of 84.7% as bars and restaurants closed across the country.

These figures go up to the end of June only, with the data reflecting the gradual reopening of retail businesses, followed by hotels and restaurants

ONS deputy national statistical for economic statistics, Jonathan Athow, said: “The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record.

“The economy began to bounce back in June with shops reopening, factories beginning to ramp up production and housebuilding continuing to recover. Despite this, GDP in June still remains a sixth below its level in February, before the virus struck.

“Overall, productivity saw its largest fall in the second quarter since the three-day week. Hospitality was worst hit, with productivity in that industry falling by three quarters in recent months.”

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Zoe Monk

The author Zoe Monk

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