NIESR said the UK economy remains on course to decline by -20% to -25% in Q2. The initial outlook for Q3 is for growth of about 8% to 10%.
Kemar Whyte Senior Economist – Macroeconomic Modelling and Forecasting: “The latest ONS estimates suggest that GDP grew by 1.8 per cent in May as the economy started to reopen. However, GDP in May was 25 per cent smaller than in February before lockdown measures were implemented, and we are doubtful about a V-shaped recovery.
” The loosening of Covid-19 restrictions has provided an impetus to kickstart the UK economy. However, the measures unveiled by the Chancellor at the Summer Statement are a poorly timed change of tack and could trigger a sharp rise in unemployment, and possibly lead to permanent long-term damage to the economy.”
