UK economy likely to contract this quarter, GDP to take 2 years to reach pre-pandemic levels: Reuters poll

The British economy will shrink in the final quarter of the year and GDP will likely take two years to reach pre-pandemic levels, a Reuters poll said on Wednesday. The poll also predicted the UK will ink a free trade deal with the European Union.

After seeing a soaring 15.5% growth in the third quarter, the British economy is expected to shrink 2.7% this quarter, worse than the initially predicted 2.5% contraction made last month, the poll revealed.

Britain’s economy had its historic 19.8% contraction in the second quarter. On a yearly scope, the economy is seen to fall 11.2% this year and grow 5.2% in 2021, the Nov.26- Dec. 1 poll found.

Despite the bank of England ramping up stimulus, 18 of 26 economists said it would take at least 2 years for UK’s GDP to reach pre-COVID-19 levels.

More so, the Reuters poll also found the UK will agree with some form of free trade deal for goods before Britain’s transition period of informal European Union membership ends at the end of the year.