UK economy could shrink 14% this year, budget forecasters say

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UK economy could shrink 14% this year, budget forecasters say
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Britain's economy could shrink by more than 14% this year if there is lasting damage from the coronavirus, a scenario that would push government borrowing to nearly half a trillion dollars, budget forecasters said on Tuesday.

LONDON - Britain’s economy could shrink by more than 14% this year if there is lasting damage from the coronavirus, a scenario that would push government borrowing to nearly half a trillion dollars, budget forecasters said on Tuesday.

“The UK is on track to record the largest decline in annual GDP for 300 years, with output falling by more than 10% in 2020 in all three scenarios,” the OBR said in a report. In the downside scenario borrowing in the current financial year could hit 391 billion pounds , and in the upside one 263 billion pounds, with output falling 10.6%.

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