British Economy set to face its biggest downturn in 300 years

London: – British Finance Minister Rishi Sunak claimed that the economy of the United Kingdom, may be faced with the biggest slide in 300 years, given the situation created by the Coronavirus pandemic. While speaking in the British parliament, British Finance Minister Rishi Sunak said that the GDP of the United Kingdom, the sixth-largest economy in the world, will decline by 11.3% in the current year. At the same time, expressing the possibility of a 7.5% increase in unemployment, he expressed a fear that 2.6 million people could lose their jobs. Although Finance Minister Sunak did not mention Brexit in his speech, the UK Central bank has warned that the shock of ‘No Deal Brexit’ will be bigger than the Coronavirus pandemic.

1.5 million Coronavirus cases have been reported from the United Kingdom and more than 56,000 patients have succumbed to the disease. It has been revealed that British Prime Minister Boris Johnson also had contracted the infection. The lockdowns imposed in the past have caused major setbacks in the British industry and there have been massive demonstrations in various parts of the United Kingdom, against it. Against this very background, preparations are being made to impose a lockdown once again. The picture presented by the British Finance Minister shows the precarious state in the United Kingdom.

The Coronavirus pandemic, which originated from China, has hit the entire world and the economies of all the leading countries from America and Europe have collapsed. All the leading agencies, including the World Bank and International Monetary Fund, have warned that global economy may again be pushed into a recession. The information shared by the British Finance Minister only endorses these warnings. In his speech, in front of the British parliament, Finance Minister Sunak indicated that the period till 2025 would be very challenging for the United Kingdom. The British Finance Minister clarified that the British economy which will decline by 11.3% by the end of this year, will recover again. However, there will be a decline in the economy once again after that.

To recover the losses caused by the Coronavirus pandemic, the United Kingdom will have to resort to heavy borrowing and the debt could be to the tune of GBP 400 billion. The health emergency in the United Kingdom is not over. Besides, now the economic emergency is starting. Sunak pointed to the approaching economic crisis in this manner. The British Finance Minister clarified that the United Kingdom has to spend a whopping GBP 280 billion, in 2020, only to counter the Coronavirus pandemic.