• Contact
  • Privacy Policy
Blacksonrise.com
DONATE
  • Home
    • Caribbean
    • African American
    • African
    • Australian
    • Papua New Guinea
  • Ecourses
  • Herbs
  • Consultation
  • Login
    • LogOut
No Result
View All Result
  • Home
    • Caribbean
    • African American
    • African
    • Australian
    • Papua New Guinea
  • Ecourses
  • Herbs
  • Consultation
  • Login
    • LogOut
No Result
View All Result
Blacksonrise.com
No Result
View All Result

Slow UK recovery risks ballooning borrowing, IFS/Citi research shows – SABC News

blacksonrise by blacksonrise
June 19, 2020
in Africa Business
0
Slow UK recovery risks ballooning borrowing, IFS/Citi research shows – SABC News
0
SHARES
199
VIEWS
Share on FacebookShare on Twitter

Britain’s government will still be borrowing vast sums of money five years from now if the economy takes time to recover from the coronavirus fallout, new research published on Friday showed.

The Institute for Fiscal Studies think tank and US investment bank Citi said they thought it would take the economy “several years” to adjust to the pandemic, in contrast to scenarios from official forecasters showing a relatively swift rebound.

That would point to a budget deficit of around 130 billion pounds ($162 billion) – or 5% of GDP – in five years’ time, more than double the forecast published by the Office for Budget Responsibility (OBR) in March.

Data due later on Friday are likely to show Britain is on course for a record increase in borrowing this financial year, to reach the highest level as a share of the economy since World War Two.

“Even so, with current low interest rates, additional borrowing now that boosts the economic recovery would still be worthwhile,” IFS economist Isabel Stockton said. “But once we are through the immediate crisis and the economy reaches a new normal, we will be left with elevated debt.”

Stockton added that a mix of tax rises and an acceptance that higher debt will need to be managed carefully seemed to be the most likely outcomes.

Britain’s emergency spending and tax cuts to soften the economic hit from the coronavirus crisis are likely to cost 132.5 billion pounds, the OBR said earlier this month.

It estimated new borrowing in the current financial year could approach 300 billion pounds as normal tax revenues dry up.

Credit: Source link

Previous Post

Rio Tinto caves on demands to release review of Indigenous heritage site destruction | Business

Next Post

Latest count of confirmed COVID-19 cases worldwide at 0000 GMT, June 19

Next Post
South Africa records over 10,000 cases

Latest count of confirmed COVID-19 cases worldwide at 0000 GMT, June 19

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ADVERTISEMENT

HOT Updates

No Content Available

BlackSonRise.com is an online news portal which aims to provide Caribbean News, African News, Business and much more stuff like that. Feel free to get in touch with us!

Follow us on social media:

Recent News

  • Tax experts divided on Mboweni’s expected tax announcements – SABC News
  • LaRose Spotlights African-American Owned Businesses for the Month of February – African American News Today
  • Consultations with First Nations lacking on mines proposed in northwestern Ontario 

Subscribe NOW

Loading
  • Contact
  • Privacy Policy

© 2019 Blacksonrise.com is an online news, e-learning, and business website that caters to the global black community.

No Result
View All Result
  • Home
    • Caribbean
    • African American
    • African
    • Australian
    • Papua New Guinea
  • Ecourses
  • Herbs
  • Consultation
  • Login
    • LogOut

© 2019 Blacksonrise.com is an online news, e-learning, and business website that caters to the global black community.