The Bank of England has announced that the British economy will lose 14 percent, with a 25 percent drop in GDP in the second quarter. The bank also forecast 9 percent unemployment in the second quarter of the year. The UK's gross domestic product, however, will rebound by 15 percent in 2021, according to the BoE.
"UK GDP in the scenario falls by 14% in 2020 as a whole. Activity picks up materially in the latter part of 2020 and into 2021 after social distancing measures are relaxed, although it does not reach its pre‐COVID level until the second half of 2021. In 2022, GDP growth is around 3%", the Monetary Policy Report said.
The Bank of England also noted its Monetary Policy Committee had kept rates at an all-time low of 0.1 percent amid the worst crisis in a century.
"However the economic outlook evolves, the Bank will act as necessary to deliver the monetary and financial stability that are essential for long-term prosperity and meet the needs of the people of this country", Governor Andrew Bailey said.
The BoE also warned that in the second quarter companies' sales are expected to be around 45% lower than usual, and investment might drop to 50 percent.
The coronavirus has killed over 30,000 people in the UK, which is the highest number in Europe and second in the world after the US. Numerous celebrities and politicians, including Prime Minister Boris Johnson, Health Secretary Matt Hancock, and Prince Charles contracted the disease but managed to recover from it safely.