“There will probably be a quick rebound as all the restriction measures linked to lockdowns are lifted, but a full recovery will take as much as five years,” the World Bank’s chief economist Carmen Reinhart has said in a speech during a conference held in Madrid.
U.S. job growth slowed further in August as financial assistance from the government ran out, threatening the economy’s recovery from the COVID-19 recession.
The UK’s historic contraction is dominating the headlines today.
The U.S. economy contracted at its steepest pace since the Great Depression in the second quarter as the COVID-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new cases of coronavirus.
The Chung-Hua Institution for Economic Research (CIER) has raised its forecast for Taiwan's economic growth in 2020 to 1.77 percent because of a pickup in economic activity as COVID-19 fears ease and spending vouchers are issued to consumers.
The chancellor says people are anxious about losing their job and unemployment rising. “We’re not just going to accept this,” he adds.
Sunak says he is announcing a “plan for jobs” to protect, create and support employment.
He says at the start of the crisis the government provided £160bn to cushion the economic fallout from the Covid-19 crisis and lockdown.
Britain is entering the second phase of the government’s economic response, he says. The job responding to the crisis has “only just begun”, he adds.
The chancellor says the government will put the public finances back on a “sustainable footing”, but he suggests this should be in future as Britain rebuilds.
Gloomy forecast comes 10 days before EU leaders meet to discuss €750bn recovery plan