UNITED KINGDOM

摘要

Unprecedented spending pledges from Chancellor Rishi Sunak and aggressive policy easing from the Bank of England may contain the economic depression linked to Covid-19, but an acute downturn remains unavoidable due to the shutdown of much of the economy. The upward trajectory in infections and fatalities forced the UK into lockdown on March 24, with all-but-essential businesses closed and strict travel guidelines imposed on households. Observers believe that the economy is shrinking even more rapidly than during the 2008 financial crisis, with worse to come in Q2 and possibly beyond. It is hoped that the lucrative job retention program - where the government will pay 80% of employees' wages up to £2,500 a month - can curb the volume of business insolvencies and job losses. According to the Institute of Fiscal Studies, borrowing could surpass £200bn in FY20/21 (around the 10% of GDP mark) and closely compare to spending at the start of the Great Recession in 2008. Unfortunately, several reports have intimated that financial aid may not reach all firms quickly. Meanwhile, the latest services PMI figure hinted at the scale of the economic meltdown, as it plunged at a record rate from 53.2 in February to 34.5 in March. A mammoth jump in universal credit claims in the final weeks of March also highlighted the growing threat of joblessness.