Due to the crisis caused by the coronavir pandemic, the British economy will shrink by 11.3% this year, and it will be the sharpest recession in more than 300 years, according to government forecasts released on Wednesday.
The British Minister of Finance Rishis Sunaks points out that the country’s gross domestic product (GDP) will grow by 5.5% next year, but in 2022 – by 6.6%.
Sunaks also reports that pandemic-related spending will have a long-term negative impact on the UK economy, which in 2025 will be 3% lower than forecast in March.
The severe economic downturn has forced the British government to increase borrowing to mitigate the negative effects of the pandemic. The minister explains that in this fiscal year, government borrowing will reach £ 394 billion, or 19% of GDP, the highest level in peacetime history.
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