UK economy to recover slowly from COVID: budget office

To add comments, please log in or register
Sergey Golubev
Moderator
116106
Sergey Golubev  

UK economy to recover slowly from COVID: budget office

Britain’s economy is unlikely to have a quick bounce back as it recovers from its coronavirus shutdown which could have wiped more than 30% off output last month, the head of the country’s budget forecasting office said on Sunday.

Robert Chote, chairman of the Office for Budget Responsibility (OBR), said April was probably the bottom of the crash as the government is now moving to gradually ease its lockdown restrictions.

"We know that the economy, probably at its worst last month, may have been a third or so smaller than it normally would have been, in terms of output of goods and services and people’s spending," he told BBC television.

"In practice I think you are likely not to see the economy bouncing back to where we would have expected it otherwise to be by the end of the year, on that assumption, but instead a rather slower recovery," Chote said.

"But a post financial crisis-style, extended period of austerity is not a done deal," Chote said, adding tax increases were another option.

Prime Minister Boris Johnson has said he will not lead Britain into a new period of austerity after previous Conservative-led governments sought to fix the public finances by cutting spending in many areas of public services.

more..

UK economy to recover slowly from COVID: budget office
UK economy to recover slowly from COVID: budget office
  • Reuters Editorial
  • www.reuters.com
LONDON (Reuters) - Britain’s economy is unlikely to have a quick bounce back as it recovers from its coronavirus shutdown which could have wiped more than 30% off output last month, the head of the country’s budget forecasting office said on Sunday. FILE PHOTO: General view of the Canary Wharf financial district, following the outbreak of the...
To add comments, please log in or register