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UK Officially Enters Recession for First Time In 11 Years

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Britain’s economy contracted by a record 20.4 percent in the second quarter with the country in lockdown over the coronavirus pandemic, official data showed Wednesday.

“It is clear that the UK is in the largest recession on record,” the Office for National Statistics said.

Britain officially entered recession in the second quarter after gross domestic product (GDP) contracted by 2.2 percent in the first three months of the year.

The technical definition of a recession is two quarterly contractions in a row.

The economy is beginning to rebound, however, as the government eases its lockdown restrictions.

GDP output growth was 8.7 percent in June, the ONS said.

“The economy began to bounce back in June, with shops reopening, factories beginning to ramp up production and house-building continuing to recover,” noted Jonathan Athow, deputy national statistician as the statistics office.

“Despite this, GDP in June still remains a sixth below its level in February, before the virus struck.

Overall, productivity saw its largest-ever fall in the second quarter. Hospitality was worst hit, with productivity in that industry falling by three-quarters in recent months,” he added.

Britain’s recession is its first since the 2008 global financial crisis.

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Trump Approves Return of Direct US-Lebanon Flights During Aoun’s Washington Visit

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US President Donald Trump has approved the process to restore direct commercial flights between the United States and Lebanon, a move announced during Lebanese President Joseph Aoun’s visit to Washington as both countries seek to strengthen diplomatic and economic relations.

The proposed resumption of direct flights would mark the first such service between the two countries in decades. Officials said the initiative is intended to improve travel, boost business opportunities, and strengthen ties with Lebanon’s large diaspora in the United States.

The announcement came alongside high-level talks between Trump and Aoun, which focused on implementing a US-backed framework aimed at securing long-term peace between Lebanon and Israel, expanding the Lebanese army’s role in the south, and promoting regional stability.

Aoun welcomed the decision, describing stronger transportation links as an important step toward supporting Lebanon’s economic recovery and encouraging investment and tourism. Both leaders also discussed continued US assistance for Lebanon’s security and reconstruction efforts.

While the decision signals a significant improvement in bilateral relations, aviation authorities from both countries will still need to complete regulatory, security, and operational assessments before direct flights can officially resume.

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Andy Burnham Takes Office as UK Prime Minister Following Labour Leadership Change

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Andy Burnham has officially assumed office as the United Kingdom’s prime minister after being invited by King Charles III to form a new government, succeeding Keir Starmer following a change in Labour Party leadership.

In his first address outside 10 Downing Street, Burnham acknowledged growing public frustration with politics and pledged to restore stability, improve living standards, and rebuild trust in government. He described his administration as an opportunity to reset Britain’s political direction after years of turbulence.

The new prime minister quickly unveiled his cabinet, appointing experienced Labour figures to key ministerial positions as he outlined priorities including tackling the cost-of-living crisis, boosting economic growth, devolving more powers to local communities, and addressing homelessness.

Burnham also faces significant foreign policy challenges, including the wars in Ukraine and the Middle East, as well as managing Britain’s relationship with the United States and European allies. He has already begun engaging with several world leaders as his government takes shape.

His appointment marks another major chapter in British politics, making him the country’s seventh prime minister since 2016. Supporters hope his leadership will bring greater political stability, while critics say the success of his premiership will ultimately depend on his ability to deliver meaningful economic improvements.

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AI Chip Boom Pushes South Korea’s 2027 Budget to Record $530 Billion

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South Korea has proposed a record $530 billion budget for 2027, with robust growth in the artificial intelligence (AI) semiconductor sector providing a major boost to government revenues and economic confidence.

The spending plan reflects the country’s ambition to strengthen its position as a global leader in advanced technologies while supporting economic growth, innovation, and industrial competitiveness.

Officials said the continued boom in AI chip production and exports has significantly improved fiscal conditions, enabling the government to expand investment in key sectors, including research and development, digital infrastructure, education, defence, and social welfare.

The budget also prioritises measures to enhance South Korea’s semiconductor ecosystem, support domestic manufacturers, and maintain the country’s competitive edge in the rapidly growing global AI market.

South Korea is home to some of the world’s leading memory chip manufacturers, and the surge in demand for AI-related semiconductors has driven export growth and strengthened the nation’s economic outlook.

The proposed budget now awaits parliamentary consideration as the government seeks to sustain momentum in the technology sector while addressing long-term economic challenges and improving living standards.

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