Article 524C5 UK economy could shrink by 35% with 2m job losses, warns OBR

UK economy could shrink by 35% with 2m job losses, warns OBR

by
Richard Partington
from on (#524C5)

Unemployment could hit 10% by end of spring with public borrowing rising at fastest rate since WWII

Britain's economy could shrink by 35% this spring and unemployment soar by more than 2 million due to the coronavirus crisis, the government's independent economics forecaster has warned.

In a stark assessment of the economic fallout from Covid-19 as lockdown measures bring much of the country to a standstill, the Office for Budget Responsibility said that gross domestic product (GDP) could plunge by more than a third in the second quarter of the year and by 13% for 2020 as a whole.

Related: Rishi Sunak 'deeply troubled' by OBR warning of 35% fall in UK GDP

The Office for Budget Responsibility is the government's independent forecaster, which gives its verdict on the outlook for growth and the public finances twice a year.

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