The British government hopes additional measures such as the reopening of pubs and restaurants will allow the economy to rebound further.
But given the scale of the contraction, it's inevitable unemployment will sky-rocket in coming months.
“I’ve said before that hard times were ahead, and today’s figures confirm that hard times are here," said Treasury chief Rishi Sunak.
“Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will,” stated Rishi.
So far, the British government has kept a lid on the numbers swelling the ranks of the jobless through a salary support package that has given hard-pressed firms the opportunity to retain workers rather than fire them.
Under the Coronavirus Job Retention Scheme, the government has been paying a large chunk of the salaries of workers retained.
Some 1.2 million employers have taken advantage of the program to furlough 9.6 million people at a cost to the government of 33.8 billion pounds ($44 billion).
Sunak is ending the program in October on the grounds it gives “false hope” to furloughed workers while at the same time limiting their prospects of getting new jobs as their skills fade.