Skip to main content

Recession even deeper than thought

The downward revision to GDP in the first quarter means that the recession has been even deeper than previously thought. The 2.4% quarterly drop in GDP means that output has now fallen by a total of 4.9% – comparable to the falls seen at the same stage in previous recessions. (See Chart.) Timelier indicators suggest that the rate of contraction has since eased. But it seems clear that a large amount of spare capacity is building up, which will keep a lid on inflation for some time yet.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access