A LEADING business figure in Coventry and Warwickshire has said grim economic statistics released today (August 12) are inevitable in the midst of the coronavirus crisis.
And Louise Bennett, the chief executive of the Coventry and Warwickshire Chamber of Commerce, says bold action is needed to help restore confidence and build on a rebound in economic output in June.
The Office for National Statistics confirmed the UK is in its deepest recession on record, after a 2.2 per cent drop in GDP in the first quarter of 2020 followed by a massive fall of 20.4 per cent in the second quarter as the country was in full lockdown.
Preliminary figures for June indicate an 8.7 per cent growth in the economy over the month.
Louise Bennett, the chief executive of the Coventry and Warwickshire Chamber of Commerce, says bold action is needed to help restore confidence in the local economy.
“It isn’t flippant to say that the UK entering recession was to be expected, it was inevitable when you consider the position the country was in, particularly at the end of March and in April.
“Of course, a recovery will be affected if we see a second wave while our future trading relationship with the EU will also have a strong bearing on economic growth.
“It’s vital, therefore, that we see further bold action from Government to limit the number of job losses over the coming weeks and months including a reduction in employer National Insurance contributions. Businesses will also require targeted help – especially in the event of further lockdowns either at national or regional levels.”
Bennett said the shape the economic recovery will take is unclear and will be impacted by major events such as a potential second wave of Coronavirus and the striking of a trade deal with the EU before the end of the transition period.