The economy will experience an “interrupted or incomplete” V-shaped recovery from the lockdown, a Bank of England rate-setter has warned.
Silvana Tenreyro, an external member of the Bank’s monetary policy committee, said that rising unemployment, cautious behaviour by consumers and continued social distancing could hold back the recovery.
“Behavioural responses mean that the UK economic outlook will continue to depend on the global and domestic spread of Covid-19,” Professor Tenreyro said. “Assuming prevalence gradually falls, my central case forecast is for GDP to follow an interrupted or incomplete V-shaped trajectory, with the first quarterly step-up in quarter three.”
Her comments came a day after official figures showed that the economy hd grown by only 1.8 per cent in May. Analysts had been forecasting growth of
