The economy could shrink by a record 35% by June due to the coronavirus pandemic sweeping the country.
The prediction is based on an assumption made by the Office for Budget Responsibility that the lockdown would last for three months.
However, once restrictions are lifted, the organisation which is in charge of examining and reporting on the sustainability of the public finances says there will be no limitations on growth.
The BBC reported on how separately, the International Monetary Fund warned the virus would push the UK into its deepest slump for a century, expecting the UK economy to shrink by 6.5% in 2020, with the global economy contracting by 3%.
It said the pandemic had plunged the world into a “crisis like no other.”
The BBC went on to explain how the OBR said a three-month lockdown followed by three months of partial restrictions would trigger an economic decline of 35.1% in the quarter to June alone, following an expansion of 0.2% in the first three months of this year.
It estimated that the lockdown would push up the UK’s borrowing bill to an estimated £273bn this financial year, or 14% of gross domestic product (GDP) – largest deficit as a share of GDP since World War Two.
As part of AMP’s effort to support the industry during the outbreak, it has launched the Coronavirus Advice Desk.
This is where relevant business and industry-led information is stored to help companies and individuals throughout the lockdown.
Visit the page here: