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Global economy to suffer worst slump in 100 years

by LLB Editor
10th Jun 20 12:36 pm

The OECD forecasts out today paint a bleak picture for world economies. UK GDP is expected to be -11.5% and as low as -14% if there’s a second wave of the outbreak.

The US forecasts suggest a -7.3% contraction and -8.5% with a new outbreak.

Chancellor of the Exchequer, Rishi Sunak said, “In common with many other economies around the world, we’re seeing the significant impact of coronavirus on our country and our economy. I’ve been clear that our top priority has always been to support people, jobs and businesses through this crisis- and this is what we’ve done.

“The unprecedented action we’ve taken to provide lifelines that help people and businesses through the economic disruption will ensure our economic recovery is as strong and as swift as possible.”

The FTSE 100 and more domestically-focused FTSE 250 have reversed their gains and are now down around 0.3% each – thanks to OECD’s figures.

The OECD said the health crisis is “without precedent in living memory” and has led to the “most severe economic recession” in almost a century.

The OECD have recommended that the British government delay the end of the Brexit transition period with the EU.

They said, “Given the economic disruption caused by COVID-19, a temporary extension of existing trading relationships with the EU beyond the end of 2020 would help reduce uncertainty.”

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