UK economy could shrink by 35% this year, say OBR

The fiscal watchdog’s prediction that the economy could fall off a cliff edge with around one-in-ten workers out of a job comes as Chancellor Rishi Sunak said not every business or household could be protected, but that a “bounceback in growth” was expected when the crisis eases.

In Northern Ireland, Economy Minister Diane Dodds announced financial support for business specifically targeted at the hospitality, retail and tourism sectors to help them during the outbreak.

She said “over 4,000 businesses in these sectors will be able to apply for grants of £25,000 from Monday” onwards.

Meanwhile, 12,107 patients have died in hospital after testing positive for the virus in the UK as of 5pm on Monday, up 778 from the previous day’s total, while confirmed cases reached 93,873.

In Northern Ireland, the official death toll published by the Public Health Agency yesterday stands at 134 after another 10 hospital deaths were recorded.

And in the Republic of Ireland, the official death toll now stands at 406 after 41 people diagnosed with coronavirus died.

In its first estimate of the economic toll taken by the crisis, the Office for Budget Responsibility said public sector net borrowing is expected to increase by £218 billion this year, compared with March forecasts, hitting £273 billion, or 14% of UK gross domestic product.

“That would be the largest single-year deficit since the Second World War,” the independent forecaster said.

The Chancellor said the British economy was “fundamentally sound” and would bounce back.

“While those economic impacts are significant, the OBR also expects them to be temporary,” he added.

Meanwhile, the Northern Ireland Agriculture and Health Ministers — Edwin Poots and Robin Swann respectively — have approved the use of the Agri-Food and Biosciences Institute (AFBI) laboratories to test up to 1,000 samples a day from suspect COVID-19 cases.

Minister Poots said: “Subject to us being able to secure the key test kits and reagents, AFBI is able to offer its technical and scientific expertise which will hugely support the HSC efforts in the critical area of diagnostic testing.”

He added: When fully operational in a number of weeks it is expected that AFBI may test up to 1,000 samples per day.”