Experts at EY Item Club say economy will require extra 18 months to bounce back to same size it was in 2019
The UK economy will require an extra 18 months to bounce back to the same size it was in 2019, according to experts at the EY Item Club.
Analysts have pushed back forecasts from early 2023 to late 2024, after data showed wary Britons spent less than expected on the High Street and at restaurants once lockdown began lifting.
Howard Archer, chief economic adviser to the EY Item Club, said: ‘Consumer caution has been much more pronounced than expected.’
Making slow progress: As well as being afraid of catching the virus in public places, many Britons have also been worried about their job security
As well as being afraid of catching the virus in public places, many Britons have also been worried about their job security and how much money they should spend on shopping and eating out.
The longer recovery time-frame came as EY revised estimates for how much the economy contracted between April and June.
Experts reckon it fell 20 per cent – a hefty downgrade from the 15 per cent fall in its last set of predictions last month.
Overall this year, EY expects the economy to fall by 11.5 per cent – a change from the 8 per cent it predicted last month.