Britain prepares for sharpest recession on record
Britain prepares for sharpest recession on record

None of the world economies will be able to hide from the negative effect of the coronavirus. The G7, seven largest advanced countries, will take the brunt of the pandemic and the United Kingdom will not be an exception. The country risks experiencing the sharpest recession on record. Notably, the UK keeps its economic statistics since 1706. This year, the country’s economy is expected to drop by 14%. Such a drastic decrease in economic activity is likely to become the worst in three and a half centuries. James Smith, Research Director at Resolution Foundation, announced that the hit to the economy this year was equivalent to £9,000 (around $11,000) for every household in Britain. The expert forecasts that the average wage this year can decrease by at least 2% and unemployment is expected to rise by above 9% versus the current 4%. However, the recession is unlikely to last long. The UK economy has gone through several economic nosedives before. Even though the current recession is expected to be much worse, the country’s authorities believe that they will manage to stop the possible economic crisis. The British government anticipates that the economy will advance by 15% in 2021. However, it is better to focus on the present situation at the moment. According to IHS Markit, the UK business activity collapsed to 12.9 points in April.  Thus, the government has launched a programme which aims to compensate up to 80% of salary expenses for companies that apply for support.

Published: 2020-05-14 14:04:04 UTC
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