U.K. Economy Slumped 20.4% in Second Quarter

The transcript discusses the UK's economic recession, comparing its performance to other European countries. It highlights the impact of the pandemic, the role of furlough schemes, and the potential future challenges, including rising unemployment. The UK's reliance on services and delayed lockdown are noted as factors affecting its economy. The discussion also covers the differences between the UK's and Germany's furlough schemes, with Germany's open-ended approach seen as more beneficial. The potential expiration of the UK's furlough scheme is expected to worsen unemployment and economic conditions.

What was one of the reasons for the UK's poor economic performance in the second quarter compared to other European countries?

• The UK's strong fiscal stimulus

• The UK's reliance on manufacturing

• The UK's reliance on services

• The UK's early lockdown

How does the UK's furlough scheme differ from Germany's in terms of duration?

• The UK's scheme is open-ended

• Both schemes are open-ended

• Germany's scheme has an end date

• The UK's scheme has an end date

What percentage of businesses indicated they might fire furloughed employees once the scheme ends?

• 10%

• 25%

• 33%

• 50%

What is a potential consequence of the UK's furlough scheme ending?

• Stabilization of small businesses

• Decrease in unemployment

• Increase in consumer spending

• Rise in unemployment

What is the current unemployment rate mentioned in the transcript?

• 6.2%

• 3.9%

• 4.5%

• 5.0%