Official Forecasts Now Predict The Biggest Economic Decline In 300 Years
The impact of COVID-19 has been monumental for a lot of us, particularly for business. UK Chancellor Rishi Sunak has today warned “the UK economy will contract by 11.3% this year, the largest fall in output for 300 years.” He then went onto state that economic output won’t reach pre-crisis levels until Q4 2022.
The lasting effect will be with us much further with the economy expected to be 3% smaller than expected. With this there is more bleak news – UK unemployment rate will reach its highest level since the 2009 financial crisis.
The Office for Budget Responsibility (OBR) have identified a sharper decline in the UK economy and slower recovery compared to other European countries due to a later and longer lockdown.
With the future of the UK’s relationship with the EU and the terms of Brexit up in the air, forecasts for the UK economy remain even more clouded. The OBR have said the UK failing to secure a deal will result in the economy shrinking by a further 2% in 2021 with the economy not returning to pre-pandemic size until at least the second half of 2023.
What does this mean for you?
With the UK economy continuing to shrink with no sign of returning to pre-pandemic shape anytime soon we’re likely to see more insolvencies in the current months. If you have outstanding invoices, need a customer credit checked our need help with your ledger, our friendly team are always ready to help. Get in touch for a free consultation by calling 01698 821 468.