Bank of England warns coronavirus crisis will see GDP slump nearly 30 PER CENT in the first half of this year and push the economy to worst recession for 300 YEARS
- Bank of England has issued grim estimates for the coronavirus hit on economy
- GDP expected to drop by 14 per cent this year, the biggest fall for 300 years
- Unemployment likely to hit 9 per cent before falling back again more slowly
James Tapsfield – Daily Mail May 7, 2020
UK GDP will slump by 14 per cent this year, and the shockwaves from coronavirus will be felt into 2022, the Bank of England warned today.
In its latest assessment, the Bank said the economy will shrink by nearly 30 per cent in the first half of this year before recovering some ground.
But the impact of the deadly disease will continue to be felt for at least another year afterward. Unemployment could hit 9 per cent before falling back again.
The 14 per cent fall estimated for 2020 would be the biggest recession for 300 years. The Bank says it believes there was a 3 per cent contraction in the first quarter, and will plummet by an incredible 25 per cent in the current three month period, before finally clawing back some ground.
Announcing that interest rates have been kept on hold at a record low of 0.1 per cent, Governor Andrew Bailey said it was acting to ease the effects as much as possible.
‘The Bank’s three policy committees have taken complementary actions to lower the cost of borrowing, to put the banking system in a position to lend and to support the functioning of financial markets,’ he said.
In its first official outlook on the toll taken on the UK economy by the Covid-19 pandemic, the Bank cautioned over a ‘very sharp’ fall in GDP over the first half and a ‘substantial’ hike in unemployment.
Talk about stating the bloody obvious.
If you intentionally shut down the economy of your country, starve the people of income, purchase and businesses to trade, then what the Hell did they expect would happen.
What a bunch of turds.
This is fantasy economics. The regime, along with the Bank of England is creating huge quantities of fantasy money & some of it will be lent at interest… go figure. Mr. Tapsfield (presstitute) of the Daily Fail is just the messenger.
Andrew Bailey was the former head of the FCA, which is funded by the City to regulate the City crime cartels’ behavior. Mr. Bailey did sweet feck all to curtail the criminal activities of the City and as a reward for this was the Bank of England’s top job. Presstitute Tapsfield didn’t think to ask about the coming inflation/hyper-inflation?
As I’ve stated in another comment to another article, this staged Covid collapse is exactly what the regime had planned in order to restructure the UK for Brexit. The future will have worse working conditions and lower pay because this is the only way they can make the Brexit con work. The regime plans to turn the UK into a slave tiger economy over-seen by an Orwellian police-state. How the regime marveled at the Malaysian model. Brexit voters have been taken to slaughter & dragged the rest of us with them. As Boris says: “The UK will diverge from the EU.” Divergence means a trade war with the EU, so you can kiss your arse to EU market access. Of course, the Brexit/Covid plan is to collapse the EU. We will have to wait and see on this one, but you can expect the EU, Russia, and China to become closer, just as the UK will effectively become the 51st after Trump leaves the White House.
The EU and Russia aren’t blaming China for Covid & I believe their key people know damn well that the UK and US (minus Trump) are behind this move to destroy these three very successful economies.
I’d be interested to hear what Brexit supporters think?
The Bank of England is notorious for getting things wildly wrong and this seems to be another example because I think things will be much worse than they are saying . Its from the Daily Mail so of course it has to call CV a deadly virus when it quite patently is no such thing. The scam is that the financial institutions will blame all this on the coronavirus as though it was so deadly and so many people were infected that there was no choice but to close down whole economies. This completely ignores the fact that this oncoming depression has been predicted for years the only unknown being exactly when , then along came the virus story thank you very much . In the US and the UK the FED and the BOA have , at tax payers expense , bailed out the banks and some corporations whilst letting everything else go to the wall .
How long did it cost Britain to pay off the last big war.
So, the economy is going to be driven back the early 18th century. The way events are panning out, the Fail hack may well be correct. Enormous wealth for the few and a scattering of crumbs for everyone else, nothing in-between. The crumbs will only be available to those who receive the Mark, of course.
You may even have enough ‘crumbs’ left for night at the pub – if any re-open – to sip your Victory gin, whilst observing the new social distancing rules of 5metres, and reminisce about the old days. The days when the football was on the telescreen, instead of the endless news reports of the latest success in the war with China. The days when 2+2=4
dunno y: I don’t believe WW2 debt has been cleared. I believe it was nearly cleared in 2007, then we had 2008.
mr. mustard: be careful now, you must love your country… whatever that means. Don’t question anything, especially on here.