The Bank of England on Thursday warned that the UK economy is heading towards its deepest recession on record, as the British economy will shrink by 14 percent this year. The Covid-19 pandemic was “dramatically reducing jobs and incomes in the UK”, it said. Bank governor Andrew Bailey told the BBC there would be no quick return to normality. The EU has forecast an eight-percent contraction for the UK.
The EU is heading for a historic economic recession on the back of the coronavirus pandemic, and a patchy rebound could put the single currency at risk.
The eurozone is projected to contract by 7.75 percent and the EU to be hit by 7.5 percent this year, according to a forecast published by the commission on Wednesday.