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UK forecasts show 11.3% GDP contraction in 2020, rebound in 2021

FILE PHOTO: Shoppers cross the road in Oxford Street, in London, Britain August 14, 2016. REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) - British finance minister Rishi Sunak announced updated growth forecasts for the country’s coronavirus-hit economy which was on course to shrink by 11.3% this year before recovering by 5.5% in 2021.

In July this year, the Office for Budget Responsibility had forecast output would fall by 12.4% in 2020 before rebounding by 8.7% in 2021.

Sunak announced the OBR forecasts as he delivered a one-year plan for government spending.

Reporting by David Milliken, editing by Kate Holton

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