Economics
U.K. Economy’s Lackluster Growth Signals Slower Recovery
- May rebound comes in far smaller than economists predicted
- OBR sees more than 10% slump this year, huge deficit blowout
This article is for subscribers only.
The U.K. economy’s expansion was much weaker than expected in May, casting doubt on how fast the nation can rebound from the depths of the coronavirus slump.
Disappointing figures for growth came as the country’s fiscal watchdog outlined the strain on government finances from the billions spent to help businesses and workers through the crisis. It said the budget deficit could balloon to 21% of output this year, and the debt ratio will stay above 100% for the next five years.