Robert Chote

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has A prognosis that suggests The British tax and spending watchdog, the coronavirus crisis have said "serious consequences" for The British economy, Chancellor, Rishi Sunak .

The Office for Budget Responsibility (OBR) has shrink the pandemic could be the economy, a record 35 percent in June.

Mr Sunak said that The Forecast was only a possible scenario.

But He Said it was important that the government is "honest with the people about what may be happening".

He Said the OBR figures suggest that the extent of what the UK ", with serious consequences for our economy," together with the other countries.

"there are hard times, and there will be more to come," Mr Sunak said.

But He Said that while the government could not all protect companies and the budget, "we came into this crisis with a healthy economy, driven by the Hard Work and the ingenuity of the British People and British companies. "

The OBR also expects that the economic impact of The Crisis to be temporary, He Said .

He added that the government "don't just Stand By " and act to support the economy.

"Our economic reaction, is the protection of millions of jobs, businesses, self-employed, non-profit institutions and private households," He Said .

"Our plan is The Right plan. "

Mr Sunak added that at The Moment , "the most important thing we can do to protect the economy, the protection of the health of our people. "

The OBR said a three-month lockdown, followed by three months for the triggering of partial restrictions in an economic decline of 35. 1% in the quarter to June alone, following growth of 0. 2% in The First three months of this year.

Robert Chote , The Chairman of the OBR, said a drop of this magnitude would be the largest "in living memory".

While The British economy of the contract from 12 would. 8% this year, under this scenario, it is expected to return to the pre-crisis growth trend until The End of 2020.

The OBR back stressed the actual amount of growth depends on how long the lockout lasted, how quickly activity bounced as soon as the restrictions were relaxed.

to recover, In any case, it is expected that half of any sharp decline in the growth to be reversed in The Second quarter, in the three months to September, as the economy begins.

Separately, the UK would slide into its deepest slump in a century.

In its report, the IMF said it expects The British economy to shrink by 6. 5% in the year 2020, while the global economy of the contract to 3%.

Coronavirus-related deaths in British hospitals, an increase of 778 increased to 12,107, on Monday, a total.

And More Than one-fifth of the deaths in England and Wales is to show numbers.

The Office for National Statistics data showed that The Virus was mentioned to 3,475 death certificates in the week to 3. April.

It helped push the total number of deaths this week of More Than 16,000 - a record-and 6,000 More Than expected at This Time of year.

"Unprecedented financial aid'

The OBR estimates, said a three-month lockdown would Push Up UK borrowing bill to an estimated £273bn in the current year, or 14% of the gross domestic product (GDP).

This corresponds to the largest deficit as a share of GDP since The Second World War .

While the borrowing is expected to jump, the OBR said the government set a limit on the unprecedented financial support for workers and businesses, which would help to the long-term damage.

The OBR expects a longer-lasting impact on unemployment, the estimates increases by 2. 1 million to 3. 4 million by The End of June.

Under this scenario, unemployment hits would be 10%, from the current 3. 9% rate, before easing to around 7. 3% at The End of the year.

The unemployment rate is expected to remain at a high level until 2023, when it is expected to be back by 4%, In Line with the OBR, The March forecast.

These are given incredible numbers, the government officially, though independent, forecasters at the OBR.

they show what is At Stake , and why the government has to, in order to his economic rescue plan on site. It is the function of the COBR discussions. In fact, some senior public-health experts believe that the government has an economic counterpart to the most influential SAGE of the Committee of science.

But that's not quite a direct trade-off. Exists, clearly on The Way in, the economy was shut down for the protection of Public Health . On The Way out of these measures, The Balance easy.

If the block is removed prematurely, the Health System could fall, the workers could go to simply refuse to to work anyway, and none of it would be positive for the economy.

in fact, if it is repealed, The Absence of a vaccine means that these trade-offs are likely to be considered week-to-week and sector, for months.

hit to the public finances

The OBR expects that the UK debt will be higher, for years, with the additional borrowing is expected to push Britain's debt-to-share to over 100% of GDP this fiscal year, if the lockout lasts three months.

During these fall dramatically, as The British economy recovers, the public debt is expected to continue at 84. 9% of GDP in Four Years , much higher than the 75. 3% forecast in The March Budget.

Mr Chote, said a lengthy lockout could have more serious consequences for the economy.

He Said : "the longer the lockout lasts, the more likely it is that The Future ability of the economy scarred by bankruptcies, to find due to less business investment and unemployment it is more difficult to get back into the labour market. "

But, the OBR stressed that the restrictions were necessary to protect the economy from a prolonged slowdown.

He Said additional expenditure by the Ministry of Finance to support the economy would also limit the economic damage.

"The government's policy response costs are a significant, direct budgetary, but the measures should help to limit long-term damage to the economy and the public finances - the costs of inaction would certainly have been higher," the OBR said.

He added that while the blocking was the main obstacle for the economic activity and relaxation, these actions would soon lead to more damage.

"The Reason why the most of the short-term economic impact that comes from these measures, they have been successful in limiting the spread of the disease.

"If the measures were not strict enough to control the disease, the economic impact of disease would be much bigger. "

uk economy, office for budget responsibility, coronavirus pandemic

Source of news: bbc.com