The British economy has been crushed by the effects of Chinavirus in a deep, and possibly long lasting, crisis which threatens the countries Brexit timeline for seperating from the EU.
“Based on the early indicators, and based on the experience in other countries that were hit somewhat earlier than the UK, it seems that we are experiencing an economic contraction that is faster and deeper than anything we have seen in the past century, or possibly several centuries,” said Bank of England (BoE) interest-rate setter Jan Vlieghe.
The United Kingdom is the world’s 5th largest economy and will issue 180 billion pounds ($222 billion) of government debt over the next 3 months which surpasses what was budgeted for the entire 2020 financial year. With $2.5 trillion in debt and its public sector net borrowing approaching 14% of gross domestic product this year the UK will run the biggest deficits since World War Two.
Prime Minister Boris Johnson has been criticized by opposition politicians and some epidemiologists for his “slow” reaction to the Chinavirus outbreak but now the question on every Briton’s mind is how the government can set up an exit strategy. The PM is still recuperating from his own Chinavirus infection while the nation is suffering through the fifth week of a lockdown keeps people in “social distancing” isolation.
While most Brition’s can only leave home for essential work, food shopping and exercise there are some die-hard Remainers who want to use the Chinavirus pandemic as an excuse to delay Brexit.
The first round of trade talks between London and Brussels began on Monday after both parties agreed to conduct negotiations remotely due to the lockdown measures of the coronavirus pandemic. Brexit Party leader Nigel Farage made the point that England could be dragged into an impending Eurozone financial crisis if the government doesn’t complete the EU exit before the end of this year.
To recover from the Chinavirus infection the UK must exit from their self imposed isolation and from the European Union. “The economy’s potential is severely disrupted at the moment but, once the pandemic is over, and other things equal, in principle it should return approximately to the pre-virus trajectory,” Vlieghe said in an online speech.
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