UK economy might not return to original size until 2023

28th April 2020 / NewsBits
  • The UK economy may not return to its late 2019 size until 2023, according to a forecast by the EY ITEM Club. The Spring Forecast 2020 has significantly downgraded its near-term outlook for the UK economy. The forecast is based on the assumption that some lockdown restrictions will start to be eased in May, with even more in June.
  • UK GDP is expected to contract by 6.8 per cent in 2020, before returning to positive growth of 4.5 per cent in 2021.
  • Consumer spending is forecast to plunge by 7.5 per cent this year, before rebounding to growth of 4.9 per cent in 2021.
  • Business investment is predicted to be the most severely impacted, falling 13.6 per cent this year and then growing by just 1.2 per cent in 2021 and 6.5 per cent in 2022 as the economy and confidence recover.

Source: Net Times

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