UK economy could shrink by 35% in April-June period - OBR

Britain's economy could shrink by 35% in the April-June period because of the government's coronavirus shutdown but then bounce back quickly, the country's independent budget forecasters said on Tuesday.

The Office for Budget Responsibility said in a projection that Britain's budget deficit could hit 273 billion pounds ($342.23 billion) in the 2020/21 financial year, five times the OBR's previous estimate and equivalent to 14% of gross domestic product.

The projection was based on the assumption that the shutdown lasts for three months followed by another three-month period during which restrictions are gradually lifted, the OBR said. ($1 = 0.7977 pounds)