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27 April 2020updated 06 Oct 2020 9:45am

UK economy will not recover from coronavirus crisis until 2023, economists warn

By Samuel Horti

The UK economy will not rebound to its pre-coronavirus crisis size until 2023, economists at leading forecast group EY Item Club have predicted.

The country faces a “deep, short recession”, they said. UK GDP will contract 6.8 per cent this year before rebounding next year, reaching growth of 4.5 per cent, the forecast said.

Consumer spending will shrink 7.5 per cent this year before growing by 4.9 per cent in 2021, while business investment will plunge 13.6 per cent during 2020, recovering slightly to 1.2 per cent growth next year, the forecast said. 

The forecast assumed that some lockdown restrictions would be eased across May and June.

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