UK Chancellor Rishi Sunak says economic damage from the coronavirus pandemic will last and in 2025 the economy will be 3 percent smaller. UK Chancellor Rishi Sunak has told lawmakers that the Office for Budget Responsibility (OBR) expects unemployment to rise to a peak of 2.6 million people next summer – a level of 7.5 percent, Sky News reports. The OBR has also forecast an 11.3 percent contraction in the UK economy this year – the largest fall in output for more than 300 years, the chancellor said. Long-term scarring means, in 2025, the economy will be around 3 percent smaller than expected in the March budget." However, the predicted economic contraction and rise in unemployment level were both less than the OBR's previous forecasts from the summer.

Source: The Standard November 25, 2020 14:26 UTC