{"id":72310,"date":"2020-10-05T11:41:09","date_gmt":"2020-10-05T11:41:09","guid":{"rendered":"https:\/\/secondchargemortgageuk.com\/?p=72310"},"modified":"2020-10-05T11:41:11","modified_gmt":"2020-10-05T11:41:11","slug":"uk-gdp-forecast-to-shrink-by-around-10-per-cent-in-2020","status":"publish","type":"post","link":"https:\/\/secondchargemortgageuk.com\/uk-gdp-forecast-to-shrink-by-around-10-per-cent-in-2020\/","title":{"rendered":"UK GDP forecast to shrink by around 10 per cent in 2020"},"content":{"rendered":"\n
Economic forecasters expect UK GDP to contract by around 10 per cent in 2020 following a tightening of coronavirus restrictions.<\/p>\n\n\n\n
New research published today by PwC has forecast a contraction of between 11 and 12 per cent for the year, while S&P Global has predicted the UK economy will contract by 9.7 per cent.<\/p>\n\n\n\n
Both firms anticipate GDP to rebound going into 2021, but uncertainty caused by Covid-19 means the UK\u2019s recovery could take several years.<\/p>\n\n\n\n
PwC believes there could be growth of around 10 per cent or 4 per cent next year, depending on the spread of the virus and the measures needed to control it.<\/p>\n\n\n\n
If Covid-19 remains relatively contained, the economy could return to pre-lockdown levels by the end of 2021, the report said. However, further outbreaks and lockdowns could see any recovery last until mid 2023.<\/p>\n\n\n\n
Meanwhile, S&P said the economy was on course to grow by 15 per cent in the third quarter, and could rebound by as much as 7.9 per cent next year.<\/p>\n\n\n\n
Slow recovery<\/strong><\/p>\n\n\n\n However, the report said the UK would not reach pre-pandemic levels until 2024 at least. It cited the tightening of measures and local lockdowns, as well as an \u201cabrupt switch to a bare-bones trade agreement with the EU in the new year\u201d as reasons for the lower forecast.<\/p>\n\n\n\n