PUBLISHED: 18:16, Thu, Nov 5, 2020 | UPDATED: 18:18, Thu, Nov 5, 2020
Today, the Bank of England projected the UK GDP is set to shrink by 11 percent for the entire year due to the outbreak of the coronavirus pandemic. The UK is now in its second national lockdown as cases continue to rise.
Bank of England Governor Andrew Bailey said: "Recent evidence from the Bank's agents and a range of business surveys and intelligence suggests that while some businesses feel prepared for the change in trading arrangements, others - particularly smaller firms - do not feel fully ready, with Covid having hampered some preparations.
"Therefore in the central case in our November projections, adjustment by businesses to the new arrangements is assumed to lead to a further, temporary, effect on trade in the near term.
"These additional effects on trade are assumed to be temporary and to unwind over the course of six months, as businesses adjust."
ITV’s Robert Peston warned of the devastating economic threat to the UK amid the second lockdown.
Boris Johnson warned of devastating threat (Image: Getty)
ITV's Robert Peston (Image: Getty)
He tweeted: “We are losing more than one in every ten pounds of our income, one of the worst performances in the world.
“The fall in US GDP is forecast at ‘just’ 3.75 percent, the euro-area shrinkage is 6.75 percent and the global decline is projected at 5.25 percent.
“Given that the virus is the same virus everywhere, it is difficult to argue that the UK’s policy response to it has been economical optimal, even adjusting for the UK’s disproportionate reliance on services that thrive on the kind of human contact that the virus has made dangerous.
“It is not over till it is over, but the combination of excess deaths and excess economic loss in the UK raises big questions for the government.”
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UK now in second national coronavirus lockdown (Image: Getty)
The UK has been one of