UK economy won't recover from COVID until end of 2022
Friday, 12 11 2020, Category: Economy, Country: United Kingdom
Britain’s economy is unlikely to return to its pre-COVID size until the end of 2022, and unemployment looks set to rise sharply in the first half of next year, the Confederation of British Industry warned on Thursday.
The CBI estimated Britain’s economy would shrink by a record 11.1% this year as a result of the coronavirus, before growing 6.0% next year and 5.2% over the course of 2022.
Unemployment is set to peak at 2.51 million people, or 7.3% of the workforce, in the second quarter of next year after the end of a government furlough programme.
“We simply must find new ways to get businesses investing at the start of 2021 if we are to fast-forward the recovery,” said Tony Danker, the CBI’s new director-general.