This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
Investors are digesting the latest UK economic forecasts this week, which make for a bleak reading.
The UK’s independent tax and spending watchdog, the Office for Budget Responsibility (OBR) has warned that UK GDP could fall by 35% over Q2 as a result of the COVID-19 lock-down.
UK to Extend Lock-down Into May
The UK government is due to extend the current lockdown this week. According to Dominic Raab, currently standing in for Boris Johnson, this extension will be up for review on May 7th.
OBR has forecast that the economy will rebound as soon as the current restrictions are lifted. However, there is still a great deal of uncertainty over the timeline for reversing the lockdown, This also raises downside risks for the remainder of the year.
Chancellor Rishi Sunak was quick to comment on the report. He stated that believes it is vital the UK government is “honest with people about what may be happening in our economy”.
Sunak warned that the lock-down “will have serious...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.