(Reuters) – Deutsche Bank said on Monday it expected Britain’s economy to shrink 6.5% in 2020 in what it suggested could be the biggest recession for a century.
The bank said the economy had likely contracted 1.9% in the first quarter and predicted a record 13% drop in the April-June period on a quarter-on-quarter basis.
While Deutsche saw UK growth rebounding swifty, it warned of “downside risks”, hinging on the duration of the economic lockdown.
“For now, we expect growth of COVID-19 cases to peak by around mid-April. Should this prove optimistic, the hit to the economy will likely be more acute than anticipated,” the bank added in a research note.
(Reporting by Sujata Rao; Editing by Tommy Reggiori Wilkes)
