China News Agency, London, May 7 (Zhao Xingyiping) The Central Bank of England issued a report on the 7th warning that the British economy will shrink by 14% this year due to the impact of the new crown virus. The British economy is heading for the worst recession on record.
The picture shows the medical staff in the intensive care unit of a British hospital.
Bank of England Governor Andrew Bailey disclosed to the media that the British economy experienced an "unprecedented" recession due to the impact of the New Crown Virus Crisis. From January to March, the UK's GDP fell by 3%, it will fall further by 25% in the second quarter, and it will fall by 14% throughout the year. This is the most serious annual economic contraction in 314 years since the data was reconstructed in 1706.
The Bank of England report shows that the unemployment rate is expected to climb from the current 4% to over 9% this year. A few days ago, the aviation industry has ushered in a wave of layoffs. British Airways, Virgin Atlantic and other companies have laid off more than 20,000 employees. Some airlines even closed overnight. Debinham, the "old national brand" of the retail industry, also began to lay off employees. The number of people applying for relief has increased dramatically.
Bailey said that even if the closure of the epidemic is gradually lifted, the social economy will not return to normal soon. "Considering that consumers will remain cautious and will not fully adapt and invest in a new life, perhaps social activities will not be fully restored until next summer."
The bank report emphasizes that the current economic outlook is "abnormally uncertain" and will depend on how households and businesses respond to the epidemic. So far, the economic loss of each family in the UK is equivalent to 9,000 pounds. "In the face of this huge economic blow, the Bank of England and the government have made the right decision and taken bold action to protect as many families and businesses as possible."
According to the report, the UK's economic growth is expected to rebound by the end of 2021, and the scale of the economy is not expected to return to the peak level before the outbreak of the new coronavirus until the middle of next year. (Finish)