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Scoop.it!
Office for Budget Responsibility forecasts UK’s biggest peacetime deficit in 300 years 
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Scoop.it!
NIESR also says impact of coronavirus will lead to spike in unemployment to above 10%
Graham Watson's insight:
The first attempts to estimate the scarring effects of the coronavirus pandemic have started to appear, and I'd love to see all of the assumptions behind the modelling. However, the National Institute of Economic and Social Research is forecasting an £800bn hit to the size of the UK economy over the next decade, which would be made worse by any second spike the the virus in the months ahead.
That said, the caveats contained in the forecast are plentiful - although the headline figures - of a 30% drop in GDP in the short-term, and a 7.5% fall over the course of a year, suggest that there are tough decisions ahead.
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More on yesterday's OBR report that suggests that UK post-pandemic unemployment is likely to reach levels above the 1980s, and that the budget deficit is also going to be the largest in nearly 300 years - I'm assuming as a % of GDP, as the article doesn't make this self-evident.
Even worse, the three recovery scenarios considered by the OBR also seem to imply that the recession may well be deeper and that the recovery will be slower such that GDP in five years' time is going to be 3% lower than would have been the case without coronavirus. Happy days!