Virus Pushes Britain Into Record Recession, NZealand Mulls Election Delay

By on

The global coronavirus pandemic pushed Britain into its deepest-ever recession, data showed Wednesday, as New Zealand warned the re-emergence of COVID-19 could delay its upcoming election.

The British economy -- the world's seventh in size -- contracted by an unprecedented 20.4 percent in the period from April to June, far worse than any of its European neighbours and also well below the so-called Group of Seven richest countries in the world.

By comparison, France's economy contracted by 13.9 percent in the second quarter, Canada by 12 percent, Germany 10.1 percent, the United States 9.5 percent and Japan 7.6 percent.

The news that the virus has knocked down a fifth of its economy came as Britain continues to grapple with one of the highest death tolls in the world from the pandemic, which some observers blame on the government's early dithering over the imposition of strict confinement measures.

Nevertheless, the subsequent lockdown brought activity shuddering to a halt particularly in the key services, production and construction sectors.

"It is clear that the UK is in the largest recession on record," said the Office for National Statistics, which compiles the data.

Even if some experts are still predicting a "V-shaped" rebound, Britain's economic woes could not come at a worse time as it still has to reach a trade deal with the EU following its exit from the 27-country bloc.

New Zealand's Prime Minister Jacinda Ardern is considering delaying the country's September election New Zealand's Prime Minister Jacinda Ardern is considering delaying the country's September election  AFP / Marty MELVILLE

Experts agree that the absence of any trade deal with the EU would only further exacerbate Britain's problems.

On the other side of the world, New Zealand's Prime Minister Jacinda Ardern said the upcoming election in September could be postponed as the coronavirus seems to have re-entered the Pacific country.

The WHO says that 165 candidate vaccines are being worked on around the world The WHO says that 165 candidate vaccines are being worked on around the world  Russian Direct Investment Fund / Handout

With 1.5 million people under stay-at-home orders, and millions more at risk of a wider outbreak, Ardern said she was seeking advice on delaying the election currently scheduled for September 19.

Parliament was due to be dissolved on Wednesday to allow the election to take place, but the centre-left leader held off the move until Monday to monitor how the crisis evolves.

"At this stage, it's too early to make any decision but this means there is some flexibility if required," said Ardern, who is well ahead in opinion polls and expected to win a second term.

Quarterly GDP change in British since 2005 Quarterly GDP change in British since 2005  AFP / Gillian HANDYSIDE

With the number of coronavirus cases worldwide surpassing 20 million and the number of deaths fast approaching 750,000, the World Health Organization has warned that a second wave is "almost inevitable".

Countries across the globe are starting to reintroduce restrictions as the number of infections tick higher.

In Belgium, which is battling one of the most serious coronavirus outbreaks in Europe, authorities made the wearing of face masks in public compulsory in the Brussels region from Wednesday.

Belgium has one of the highest per capita death rates from COVID-19 in the world and infections are again rising after earlier success in bringing the epidemic under control.

The Paris marathon joins a list of races worldwide that have been cancelled as a result of the pandemic The Paris marathon joins a list of races worldwide that have been cancelled as a result of the pandemic  AFP / Eric Feferberg

In Italy, too, regions have begun to order new quarantines for people returning from higher-risk European countries such as Spain as they hope to stem new outbreaks of coronavirus.

Philippine President Rodrigo Duterte will be a guinea pig for a controversial Russian coronavirus vaccine, his spokesman said on Wednesday, as the Southeast Asian nation emerged as a frontrunner for overseas clinical trials.

On Tuesday, Russia had claimed it had developed the world's first vaccine offering "sustainable immunity" against the coronavirus, despite mounting scepticism about its effectiveness.

President Vladimir Putin insisted the vaccine was safe and that one of his own daughters had received the inoculation, dubbed "Sputnik" after the pioneering 1950s Soviet satellite.

But western scientists are worried that Russian researchers could be cutting corners.

On a visit to Taiwan on Wednesday, US Health Secretary Alex Azar echoed such concerns.

"It's important that we provide safe, effective vaccines and that the data be transparent... This is not a race to be first," Azar told reporters during a conference call.

"I should note that two of the six US vaccines that we've invested in entered the phase three clinical trials weeks ago that the Russian vaccine is now only beginning," he added.

He said data from the initial trials in Russia have not been disclosed.

The WHO's spokesman in Geneva Tarik Jasarevic said it was in "close contact" with Russian health authorities but that it was too soon for the global health body to give its stamp of approval without a rigorous review.

The WHO says that 165 candidate vaccines are being worked on around the world, with six reaching Phase 3 clinical trials, the last step before regulatory approval.

Indonesia is launching a Phase 3 human trial of a vaccine candidate from China's Sinovac Biotech.

In the sporting world, the organisers of the Paris marathon said this year's race has been cancelled.

The race through the French capital, moved from its original date of April 5 to November 15, joins a long list of elite marathons across the world to be cancelled this year.

The marathons in New York, Boston, Chicago and Berlin have been scrapped and London announced that it would only hold a race for elite runners because organisers say it would be unsafe for 45,000 runners to compete.

Join the Discussion