U.K. Economy’s Virus Hit May Be Smaller Than Past Slumps

The U.K. will struggle though the hit will probably be smaller than from previous recessions.

Dan Hanson

26 Nov 2020, 07:05 PM IST

U.K. Economy’s Virus Hit May Be Smaller Than Past Slumps

A shopper purchases fruit and vegetables from an outdoor market stall in London. (Photographer: Hollie Adams/Bloomberg)

(Bloomberg) -- The U.K. will struggle to avoid economic scarring from the current downturn, though the hit will probably be smaller than from previous recessions, according to Bloomberg Economics. That’s in part because of the scale of the policy response, which was expanded by Chancellor of the Exchequer Rishi Sunak on Wednesday. Still, Sunak’s spending review showed that while he’s providing support to the economy now, he’s already planning early steps to rein in the deficit in later years.