Andrew Bailey warns UK economy could be hit harder than first expected

'Scarring' from coronavirus crisis expected

Anna Fedorova
clock • 1 min read

Andrew Bailey, the governor of the Bank of England, has warned the UK economy could suffer worse “scarring” from the coronavirus crisis than originally predicted in August.

Speaking in front of the Treasury Committee, the governor said the outlook for the UK is facing a "record level" of uncertainty, rendering any forecasts made for the recovery unreliable. One of the biggest fears is that the public would exercise "natural caution" in the face of the continued coronavirus threat, which would stop them from "reengaging" with the economy. The UK economy suffered a 20.4% hit in the second quarter, bigger than any other European nation, and the Bank predicted it would shrink 9.5% this year and grow 9% next year. According to Bailey, the coronavirus crisi...

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