Winners and Losers in Eight Months That Ravaged U.K. Economy
- Couriers and airlines highlight diverging fortunes amid slump
- Economy is over 10% smaller than the BOE forecast in January
With new restrictions and Brexit threatening to push the U.K. back into recession, the economy is probably more than a year away from recouping the staggering losses inflicted by the coronavirus.
In broad terms, no sector has escaped the carnage. Economic output is still almost 10% below pre-pandemic levels, 800,000 fewer employees are on payrolls and the government is borrowing on a scale not seen in peacetime in a bid to avert mass unemployment and keep struggling businesses afloat.
Beneath the surface, however, sharply diverging fortunes can be perceived. The housing market is enjoying its best run for years, buoyed by government stimulus and pent-up demand. Retail sales are at an all-time high. Job cuts, meanwhile, have fallen hardest on young people seeking a foothold in the labor market.
On day 12 of a new lockdown in England to tackle a resurgent Covid-19 outbreak, the following charts provide an overview of the worst-hit major industrial economy eight months after the crisis struck.
The Bank of England had no idea of what lay in store when it delivered its normal forecasting round in January. Brexit presented the biggest threat, policy makers said, as they predicted growth of around 1.5% a year and unemployment remaining below 4%.