UK economy faces 5% budget deficit by 2024 – FT
- The Covid crisis is severely damaging the UK economy. The lockdown is slowly coming to an end but many businesses are going to go out of business.
- Britain is likely to run a budget deficit of 5% of national income in 2024, when Britain’s next election is due, as the hit to the economy from the coronavirus continues to weigh on the public finances, the Financial Times said.
- The FT said it based its deficit calculation on economic growth forecasts by economists.
- This buries any chance of the Bank of England’s very optimistic prediction that a ‘V’ shaped bounce would occur during 2021.