OBR – UK economy to shrink by a third – Unemployment 10%

• Britain’s economy could shrink by 35% in the second quarter and see unemployment jump by two million, according to a scenario published by the Office for Budget Responsibility (OBR).
• The UK fiscal watchdog published an estimate of the potential impact based on a three-month lockdown followed by a three-month period when restrictions are only partially lifted.
• It sees GDP bouncing back quickly after its sharp contraction in the April-June period but estimates that the jobs market will take longer to recover.
• The big increase in joblessness would take the unemployment rate up to 10%, a level not seen since the early 1990s. The rate currently stands at 3.9%.

Source: OBR

 

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