Daily Mirror (Northern Ireland)
Huge slump but then a quick bounce back
THE UK’S economy is predicted to suffer a £300billion collapse this year – but then quickly recover.
The forecast is from the Bank of England, which also warned the rate of unemployment could reach the highest level for a quarter of a century.
Andrew Bailey, the bank’s governor, said: “The scale of the shock and the measures necessary to protect public health mean a significant loss of economic output has been inevitable in the nearterm.” But he forecast the economy would recover “much more rapidly” than it did after the financial crisis of a decade ago. Any permanent damage from the pandemic would be
“relatively small”, Mr Bailey added. But the bank also expects unemployment to rise from 4% to 9%.
The number of empty shops has hit a seven-year high, says the British Retail Consortium. Helen Dickinson, the body’s chief executive, said: “Despite Government support, it is likely that some stores may not be able to reopen after the lockdown is lifted, and the vacancy rate may rise sharply.”
The Mirror has highlighted the plight of the UK’S town centres and called for action as part of our High Street Fightback campaign.
We revealed yesterday how a radical change to the way shops pay rent – based on turnover – could deliver a major boost to stores.
Research by Comparethemarket found that more than two-thirds of families with children think their finances will be affected by lockdown for six to 12 months after it ends.
Anna Mcentee, product director, said: “Household financial confidence... remains low across the UK.”