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

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 per cent this year before recovering by 5.5 per cent in 2021.

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

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