UK Faces Bleakest Outlook in Generations as More Britons Stop Working
- Bleak outlook leaves UK facing worst 20 years since 1938
- Potential growth now less than half the pre-Covid average
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The Bank of England said workforce drop-outs have become an economic dead weight that has left the UK facing its bleakest outlook in generations.
In one of the most dismal forecasts it has produced, the central bank said the economy is already in recession and will struggle for growth even when the downturn is over. Pre-pandemic levels of output won’t return until 2026, and even a minimal expansion — more than 0.7% a year — would risk a resurgence in inflation.