As the deadly coronavirus spread, the Office for Budget Responsibility has warned the UK of its worst economic slump in 300 years.

According to Evening Standard, the ravaging effect of the pandemic is set to cost the UK £192 billion.

 

Meanwhile, this development has a backup summer statement by Chancellor Rishi Sunak’s last week: to cost £192.3 billion – up from the £132.5 billion figure it forecast the previous month.

Although the OBR expects the Chancellor’s support programmes for the economy as it published the figure alongside a set of scenarios it had created to measure the potential hit to the economy and public finances over the medium term from COVID-19.

Still on the economic prediction, they suggested UK output could shrink by up to 14.3% this year, in the worst case, with the economy not recovering to pre-crisis levels until 2024.

The OBR sees GDP declining by 10.6% this year – the worst performance for 300 years, even under its most optimistic scenario.