Published: 10th Dec 2020

Business leaders have warned the UK economy will not return to pre-pandemic levels for another two years. According to the CBI’s latest forecast, it will be the end of 2022 before the economy returns to pre-Covid levels. It adds the huge fall in GDP triggered by Covid-19 restrictions in March and April – and a smaller dip over the winter following November’s second lockdown – means that an economic recovery still has some way to go. The CBI is now forecasting 6% growth in GDP over 2021, and 5.2% in 2022. The forecast notes that consumer spending has been at the epicentre of the crisis, and is set to drop by 14.7% in 2020, with leisure activity strongly curtailed and many workers reining in spending due to uncertain employment prospects and hits to incomes. But it says the Job Retention Scheme has insulated the labour market against bigger job losses, … (To read the full article, subscribe below)