Moody’s: British Economy to Contract by 10%

Moody’s Investors Services expects the British economy to contract by 10.1% in 2020, despite the UK government’s recently announced GBP 30 billion stimulus package.

In addition, the rating agency forecasts the public debt-to-GDP ratio to increase by 24% or more.

Moody’s also foresees a gradual recovery with an expected growth rate of 7.1% in 2021.

“Our forecast estimates a sharper peak-to-trough contraction for the UK than for any other G20 economy, taking account of our view that lingering uncertainty around Brexit will hold back the recovery in the second half of the year,” the rating agency highlighted.