Bank of England expects economic downturn to be less severe than feared

The bank improved its “indicative projection” for growth in the economy, forecasting that GDP will shrink by 9.5% this year, following British Government action aimed at protecting the economy.

The Bank of England has said it expects the downturn in the UK economy to be less severe than first feared, but could take longer to recover than previously predicted.

It also said that the UK economy shrank by more than 20% in the first half of the year after being hammered by the coronavirus pandemic.