COVID-19 has exposed the economic corruption of the nations of the world, as well as their fragility. According to a recent report from the BBC, the UK is set to experience a major recession.
The chancellor has said it is “very likely” the UK is in a “significant recession”, as figures show the economy contracting at the fastest pace since the financial crisis.
The economy shrank by 2% in the first three months of 2020, as coronavirus forced the country into lockdown.
Rishi Sunak told the BBC that just “a few days of impact from the virus” in March pushed the economy into decline.
Economists expect an even bigger slump in the current quarter.
Mr Sunak said: “It is now very likely that the UK economy will face a significant recession this year, and we’re already in the middle of that as we speak.”
The first quarter drop was driven by a record fall in March output, and comes after the economy stagnated in the final quarter of 2019.
Ruth Gregory, senior UK economist at Capital Economics, said the figures showed the UK economy was “already in freefall within two weeks of the lockdown going into effect”.
She added: “With the restrictions in place until mid-May and then only lifted very slightly, April will be far worse.” (source)
There isn’t a single economy that is going to escape this crisis unscathed. While the UK is important to watch, since she is certainly large, the main concern has and always will be Germany because it is Germany that is the powerhouse of Europe, and in the name of “economic recovery”, she may move towards an “independent” model apart from the EU and as such start militarizing again in a process that will eventually lead to war as it historically does.
What will be interesting to see is if a major recession in the UK worsens the German position on the European continent. If this happens, Germany may take to “blaming” the UK for her problems, similar to how she blames the PIGS (Portugal, Italy, Greece, Spain) for being unable to pay back debts owed to her when Germany, with full knowledge, gave them loans they knew that would be abused and never repaid.
Whatever happens, it will all be a “blame game” that will result in eventual fighting between the countries that will likely culminate in a World War.