U.K. on brink of deepest recession in three centuries
The big picture: In March, the global market began seeing economic effects of the novel coronavirus outbreak morphing into a depression unlike any the world has seen in generations.
- America's unemployment rate is now at its highest since the Great Depression, and it's likely a major underestimate.
Details: The central bank sees an almost 30% drop in output in the first half of 2020, "the fastest and deepest recession since the 'great frost' in 1709," FT reports.
- The U.K. unemployment rate is likely to reach 9% next year, the central bank forecasts, even as the government pays workers 80% of their salaries to make up for lost wages due to stay-at-home orders.
- Near-term investments are expected to fall sharply in response to the pandemic, the bank forecasts — which will "permanently reduce" the productive capacity of the economy if not recovered after the outbreak ends.