The Bank of England has called its pessimistic Outlook “illustrative scenario”
While the European Union earmarked a recession of historic dimensions, in left the Commonwealth of great Britain is also preparing for serious challenges. The Bank of England said that because of the epidemic of the coronavirus, the country is nearing a major economic decline for 300 years. On it informs Agency Reuters.
These assumptions are the Bank of England called the rather non-standard forecast and the “illustrative scenario”. In it is based on the assumption that the British government will gradually remove the quarantine restrictions from June to September 2020.
Under this scenario, the UK economy during April-June will be reduced by 25% and unemployment will rise by 9%. The volume of British production by the end of 2020 could be reduced by 14%. This decline was last seen in 1700 years, notes Reuters. Then caused by natural disasters and war.
When the EU economy recovers from the crisis: the European bankers have forecast
At the same time the script of the Bank of England suggests a sharp recovery of the economy in 2021, with growth of 15%.
Earlier, the international monetary Fund (IMF) estimates that overall the recovery from the global economic crisis will require more than 8 trillion dollars. The IMF also officially announced the beginning of the global economic crisis and changed the rating dynamics of global GDP in 2020. It is expected that the world economy will shrink this year by 3%, but will grow by 5.8% in 2021-m.
The experts explained why the crisis may hit Ukraine harderthan other countries. By the way, the quarantine has already led to a serious crisis in the domestic labor market. Read more about the issue please see the news story “Today”: