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Goldman Sachs warns coronavirus will push UK into recession

by LLB Reporter

Goldman Sachs has warned on Thursday coronavirus will push the UK economy to the brink of a recession within months.

The global investment bank forecast the UK’s output is set to contract by 0.2% between January and March.

As this would be the second consecutive quarter of zero growth, the UK economy will fall into a recession.

The investment bank’s economists said, “The UK is highly exposed to global activity (which we expect to contract in the first quarter), tourism exports are significant and the virus is spreading steadily within the UK.”

The blue chip index fell by 1.75% to 6696 points on Thursday.

On Thursday, Deutsche Bank analysts slashed their forecast for the UKs economic growth to 0.5% for the year.

Due to the outbreak of coronavirus the banks economists have outlined a range of responses which includes two cuts in interest rates by the Bank of England by May 2020.

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