Coronavirus Crisis on the UK Economy
S&P has warned the coronavirus outbreak will knock up to 0.2% points of UK and Eurozone growth this year, as exports and investment to China are stalled.
As the Bank of England expects UK growth at 0.8% this year, in S&P’s worst-case scenario the virus could cost the UK a quarter of its annual growth (The Times).
The virus has put a break on optimism in the market but it may accelerate the trend to move supply chains away from China, argues The Times.
“Businesses, on finding themselves vulnerable to disruptions in Chinese supply chains, may just have found another reason to shift elsewhere,” writes the newspaper.
Source: The Times


