British economic recovery not possible until after two years

Britain’s struggling economy is expected to take at least two more years to reach its pre-pandemic level, a Reuters survey showed. Though this is the case, there is only a narrow chance that the Bank of England will implement negative interest rates to fuel the recovery.

In the third quarter, the economy had recorded a 20.4% contraction. This came as the country faced the strictest lockdown to contain the spread of the coronavirus. As virus-restrictions were eased, the economy is likely to expand 15.1% this quarter.

It is predicted that the British economy will record a 6.2% growth in 2021. This is expected to follow this year’s 9.7% contraction, a figure sharper than the 9.1% decline predicted last month. In a worst-case scenario, the economy will see a 12.2% decline this year.