Bank of England interest rate hike: Impact on cost of living, inflation in UK, all you need to know

Britain's recession is deeper than those recorded by comparable economies in Europe, notably Germany, France and Italy, or by the United States. Canada and Japan, the remaining members of the Group of Seven leading industrial nations, have yet to publish their second-quarter numbers but no economist thinks they will be as bad as the UK's.

As per reports, the U.K. economy has fared worse as lockdown was introduced at a later stage as compared with others in Europe. By the time Prime Minister Boris Johnson introduced the lockdown on March 23, the U.K. had ``a bigger first wave'' than could have otherwise been the case, meaning restrictions had to go on for longer. Shops in Germany, for example, reopened on May 6 compared with June 15 in England.

The British government hopes the economy will be helped by further measures such as the reopening of pubs and restaurants and a recommendation for office workers to return to their workplaces provided they are deemed COVID-safe. (Representative Image)

At the moment, most GDP estimates for India in 2020 paint a bleak picture of sharp contraction. The World Bank projects 3.2 per cent contraction, while the International Monetary Fund pegs it at 4.5 per cent and the Asian Development Bank at 4 per cent. Nomura estimates growth at (-)5.2 per cent, and Icra recently revised its forecast for contraction in the current fiscal to 9.5 per cent. The govt is expected to announce fresh measures in the coming days, including big-ticket infrastructure projects and policy changes, to make local industry more competitive, as part of efforts to rebuild the economy.