Lockdown is likely to pull the British economy into recession

Lockdown is likely to pull the British economy into recession

British Finance Minister Rishi Sunak has warned that the situation in the British economy will worsen before it gradually begins to improve. The reason is the third lockdown, which the government decided after the epidemiological situation deteriorated significantly. According to Sunak, new measures are necessary, but at the same time they will have a significant impact on the further development of the economy. "We have to reckon that the economic situation will worsen before it starts to improve," Sunak said on Monday in the British parliament. The British economy is expected to slide back into recession. The decline is expected both in the 4th quarter of last year and in the first quarter of this year. This would mean a technical recession, which is characterized as a quarter-on-quarter decline for two consecutive quarters. At the same time, Sunak indicated that the government does not plan to provide any further financial assistance before the submission of the draft budget for next year, which will take place on March 3. He announced the latter last week to help companies affected by the new coronavirus pandemic. The value of the aid is £ 4.6 billion (€ 5.10 billion).