Economic update: UK facing 'severe recession'

Source:
House of Commons
Publisher:
House of Commons
Publication date:
28 May 2020

Abstract

The coronavirus lockdown is having a profound effect on the economy.

Large sections are closed for business, household incomes are under pressure and there is deep uncertainty over future economic prospects. Earlier this month, the Chancellor told the House of Lords Economic Affairs Committee that the UK was facing a “severe recession the likes of which we haven’t seen.”

There have been sharp falls in GDP, increases in claims for unemployment-related benefits, and increases in government borrowing of the kind not seen for generations. It also looks at the latest inflation figures.