EY Item Club experts say the economy will need an additional 18 months to return to 2019 size
According to experts at the EY Item Club, the UK economy will need another 18 months to return to 2019 size.
Analysts postponed forecasts from early 2023 to late 2024 after data showed that cautious Britons would spend less than expected in the high street and restaurants once the block was lifted.
Howard Archer, chief business advisor to the EY Item Club, said: "Consumer caution was much more pronounced than expected."
Making slow progress: Many Britons are not only afraid of being infected with the virus in public places, but are also worried about their job security
Many Britons were not only afraid of getting the virus in public places, but also worried about their job security and how much money they should spend on shopping and eating.
The longer recovery period resulted from the revision of EY's estimates for the economic slowdown between April and June.
Experts believe it has dropped 20 percent – a significant downgrade from the 15 percent decline in last month's forecasts.
Overall, EY expects the economy to decline by 11.5 percent this year – a change from the 8 percent forecast last month.