MNI BRIEF: OECD Sees UK 2020 GDP Contraction Exceeding 10%

The UK economy will likley contarct an 'unprecedented' 10.1% in 2020, despite a 'rapid and massive' emergency response to the Covid-19 crisis, the Organisation for Economic Cooperation and Development said Wednesday

Most households have seen a decline in income and economic activity will only recover gradually, with several years of high unemployment likely due to business closures and delayed investmen, the OECD said, with activity likely still below pre-pandemic levels by the end of 2021.

The Survey assumes a smooth transition to an EU Free Trade Agreement at the end of the transition period. Were there to be no free trade deal, the government should be ready to provide targeted support for affected firms and workers and put in place trade facilitation measures to smooth disruptions at the border, the OECD said.