Coronavirus: Chancellor Rishi Sunak warns of 'significant recession'

Sun Online Desk

14th May, 2020 10:37:33 printer

Coronavirus: Chancellor Rishi Sunak warns of 'significant recession'

Rishi Sunak: "In common with pretty much every economy...we're facing severe impact from the coronavirus"

 

The chancellor has said it is "very likely" the UK is in a "significant recession", as figures show the economy contracting at the fastest pace since the financial crisis.

The economy shrank by 2% in the first three months of 2020, as coronavirus forced the country into lockdown.

Rishi Sunak told the BBC that just "a few days of impact from the virus" in March pushed the economy into decline.

Economists expect an even bigger slump in the current quarter.

Mr Sunak said: "It is now very likely that the UK economy will face a significant recession this year, and we're already in the middle of that as we speak."

The first quarter drop was driven by a record fall in March output, and comes after the economy stagnated in the final quarter of 2019.

 


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