Coronavirus: the UK will face the worst recession in 400 years if lockdown continued until summer

by Apr 15, 2020Politics0 comments

Coronavirus: the UK will face the worst recession in 400 years if lockdown continued until summer
Coronavirus: the UK will face the worst recession in 400 years if lockdown continued until summer

The death toll for patients in hospitals who tested positive for coronavirus increase above 12,000, while ministers faced pressure from Labour to publish their lockdown exit strategy this week.

In its first estimate of the economic toll taken by the crisis, the OBR said public sector net borrowing is expected to increase by £218 billion this year, compared with March forecasts, hitting £273 billion, or 14% of GDP.

“That would be the largest single-year deficit since the Second World War,” the independent forecaster said.

“The sharp rise in borrowing this year largely reflects the impact of economic disruption on receipts (with smaller effects from policy measures like the business rates holidays) and policy measures that add to public spending (with smaller effects from higher unemployment).”

It based the outlook on a scenario where the lockdown lasts three months followed by a partial lifting for three months, but said, in this case, that there would be a sharp bounceback in the economy, with gross domestic product likely to jump 25% in the third quarter and a further 20% in the final three months of 2020.

READ ALSO: Canada organ transplants postponed amid COVID-19 crisis (video)

Mr Sunak told the daily Downing Street press conference: “These are tough times and there will be more to come. As I have said before, we cannot protect every business and every household.

“But we came into this crisis with a fundamentally sound economy, powered by the hard work and ingenuity of the British people and British businesses. Read Here

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