Projections released by the Office for Budget Responsibility (OBR) reveal that the British economy could face an unprecedented downturn should lockdown restrictions remain in place for three months.
The OBR said that the British economy could experience a record 35.1 per cent decline in the quarter to June, should the government’s lockdown measures, which are now all but certain to be extended by another three weeks, last for three months.
The projections also predict an increase of £218 billion in government borrowing in 2020-21, reaching a total of £273 billion, representing 14 per cent of the country’s GDP. The borrowing increase would lead to the largest single-year deficit since the Second World War, according to the report.
Though the office concludes that the GDP will “bounce back quickly” in the third quarter, it still predicts that for the year as a whole the UK will face a 13 per cent fall in GDP, a steeper decline than was experienced during either world war or the financial crisis of 2008 ... Continue reading >>>