Foreign

UK expected to see worst recession in over 300 years: senior official

Published

on

The British economy is forecast to shrink by 11.3 percent this year, the worst recession in more than 300 years in the country as a result of the coronavirus crisis, British Chancellor of the Exchequer Rishi Sunak said Wednesday.

The chancellor told British lawmakers that the Office of Budget of Responsibility (OBR) did not expect the economy to return to its pre-coronavirus levels until the end of 2022.

Sunak said the fiscal damage of the pandemic was “likely to be lasting” and cited figures from the OBR that predicted unemployment to peak at 7.5 percent, or 2.6 million people, in the second quarter of 2021.

He warned that the “economic emergency has only just begun” as he unveiled his first Spending Review in the wake of the coronavirus crisis.

In the Spending Review, he said the British government has spent 280 billion pounds (about 374.1 billion United States dollars) on its response to the coronavirus crisis and intends to spend a further 55 billion pounds (about 73.5 billion dollars) next year to tackle the pandemic.

Meanwhile, the public borrowing is set to stand at 394 billion pounds (about 526.4 billion dollars) in the current 2020/21 financial year, equivalent to 19 percent of Britain’s gross domestic product (GDP), said Sunak.

To fuel growth and support jobs, he said that Britain is estimated to spend 100 billion pounds (133.6 billion dollars) of capital expenditure next year on infrastructure.

In addition, Britain will establish a new infrastructure bank — headquartered in the north of England — to work with the private sector to finance major new investment projects across the country, he said.

Sunak’s remarks came just one day after Britain recorded the highest daily COVID-19 death toll since May 12 on Tuesday.

The coronavirus-related deaths in Britain rose by 608 to 55,838, marking the highest daily death number since May 12, according to official figures released Tuesday.

To bring life back to normal, countries such as Britain, China, Germany, Russia and the United States are racing against time to develop coronavirus vaccines.

(XINHUA)

NNN

NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

Latest News

Coronavirus – Nigeria: COVID-19 update (25 January 2021) Coronavirus – Zambia: COVID-19 update (25 January 2021) Coronavirus – Kenya: COVID-19 update (25 January 2021) 34th AU Summit strives to leverage and valorise African Arts, Culture and Heritage Signing of memorandum of understanding (MoU) Between Development of the Private Sector (ICD) and SQB Securities, Uzbekistan Africa's top business leaders to participate in awards to celebrate India's republic day to independence day Register to hear Musa Kalenga on leapfrogging tech in Africa at #BizTrends2021 Unstoppable Paule Ella Guei honoured with Sports+ Award Her Excellency Fatoumata CM Jallow Tambajang and her commitment to serve the people of Africa Coronavirus – Rwanda: COVID-19 update (25 January 2021) Coronavirus – Gambia: COVID-19 update (25 January 2021) Kenya adopts Trusted Travel digital tool for COVID-19 test result verification Coronavirus: African Union Member States reporting COVID-19 cases as of 25 January 2021, 9 am EAT Coronavirus – Uganda: COVID-19 update (24 January 2021) Beyond COVID: Prioritizing NTD agenda and sustainable local financing International Islamic Trade Finance Corporation (ITFC) announces the launching of the 2nd phase of the Aid for Trade Initiative for Arab States (AfTIAS 2.0) in June 2021 to Mitigate the Effects of COVID-19 on Trade in the Arab Region Coronavirus: African Union Member States reporting COVID-19 cases as of 24 January 2021, 6 pm EAT New Report on African media shows western sources dominate how the Africa story is told Coronavirus – Malawi: COVID-19 update (24 January 2021) Coronavirus – Kenya: COVID-19 update (24 January 2021) Coronavirus – Zambia: COVID-19 update (24 January 2021) Sudan kicks off second response campaign against polio outbreak Rugby Africa announces competition program and calendar for 2021 Coronavirus – Eswatini: COVID-19 update (24 January 2021) Situation in Central African Republic II: Mahamat Said Abdel Kani surrendered to the ICC for crimes against humanity and war crimes Coronavirus – Rwanda: COVID-19 update (24 January 2021) Coronavirus – South Africa: COVID-19 update (24 January 2021) Community health workers must be better supported in 2021, the Year of the Healthcare Worker Coronavirus – Malawi: COVID-19 update (23 January 2021) Coronavirus – Rwanda: COVID-19 update (23 January 2021) Coronavirus – Uganda: COVID-19 update (23 January 2021) Coronavirus – Ethiopia: COVID-19 update (23 January 2021) Vision of H.E. Moussa Faki Mahamat for the term of office 2021-2024 Coronavirus – Zimbabwe: COVID-19 update (23 January 2021) Coronavirus – Nigeria: COVID-19 update (23 January 2021) Coronavirus – Zambia: COVID-19 update (23 January 2021) Coronavirus – Kenya: COVID-19 update (23 January 2021) Coronavirus – Gambia: The variant strain of the SARS-CoV-2 virus first detected in the United Kingdom has been identified during sequencing in positive specimens at the National Public Health Laboratory Services Sierra Leone’s President Julius Maada Bio launches the Sierra Leone Health Village, turns Sod for the Construction of Ultra-Modern General Hospital at Kerry Town Devastation feared as Eloise approaches Mozambique Coronavirus – Ethiopia: COVID-19 update (22 January 2021) Coronavirus – Rwanda: COVID-19 update (22 January 2021) Coronavirus – Eswatini: COVID-19 update (22 January 2021) Coronavirus – Zimbabwe: COVID-19 update (22 January 2021) Coronavirus – Malawi: COVID-19 update (22 January 2021) Football: Ahmad’s old guards maintain West’s stranglehold on Confederation of African Football (CAF) Coronavirus – Nigeria: COVID-19 update (22 January 2021) Coronavirus – Zambia: COVID-19 update (22 January 2021) Coronavirus – Kenya: COVID-19 update (22 January 2021) Frightened Residents brace as Cyclone Eloise approaches Mozambique