Great Britain’s economy was seen dropping at its most rapid pace in centuries. This was mainly from the disruptions brought by the virus crisis on demand. However, it has a high chance of recovering from inactivity next quarter as more businesses resume operations, a Reuters survey showed.
The poll foresees a 17.3% contraction this quarter. This is milder than the 17.5% contraction forecasted in May. Forecasts ranged from a 6.3% drop to 25.5% as a second wave of COVID-19 infections remains to be the biggest threat to the economic outlook, according to over three-quarters of respondents to an additional question in the poll.
Median forecasts showed that the economy may decline a total of 19.0% in a worst-case scenario. But Prime Minister Boris has started lifting lockdowns, increasing hopes that the economy will recover with a 10.5% growth next quarter.