UK’s Office for Budget Responsibility said the country’s real GDP could contract by -35% in Q2, but bounces back quickly afterwards. Unemployment could rise by more than 2 million to 10% in Q2, but declines more slowly than GDP recovers.
Public sector net borrowing could increase by GBP 218B to the groups March forecast, to GBP 273B, or 14% of GDP. The large sharp rise in borrowing this year largely reflects  the impact of economic disruption on receipts and policy measures that add to public spending.
In response to OBR’s forecast, Chancellor of Exchequer  Rishi Sunak said, “the report makes clear that the actions we’ve taken – unprecedented actions – will help to mitigate the impact of the virus on our economy and that if we hadn’t done these things it would mean that things were a lot worse, for example with unemployment.
