LONDON--The U.K. economy is forecast to record its largest contraction in 300 years in 2020 and government borrowing will hit a peacetime record, the country's fiscal watchdog said Wednesday. The Office for Budget Responsibility forecasts the economy will shrink 11.3% in 2020 and public-sector borrowing for the fiscal year ended in March will reach 394 billion pounds, equivalent to almost 20% of national income, Treasury Chief Rishi Sunak told lawmakers.
Britain's government will pause pay rises for public sector workers except those working in the health service and those on lower incomes, finance minister Rishi Sunak said on Wednesday. "What this means ... is that while the government is making the difficult decision to control public sector pay, the majority of public sector workers will see their pay increase next year.
* UK to borrow 394 bln pounds in 2020/21 fiscal year. * Sunak says economic emergency is just beginning. * Many public sector workers face pay freeze. * Overseas aid spending cut by 3 billion pounds. By William Schomberg and David Milliken.
British Prime Minister Boris Johnson said on Wednesday his government would be responsible in its approach to public finances when asked whether he would cut public sector pay in a one-year Spending Review.
China's strong construction machinery sales are expected to continue until at least early next year but could be hobbled by any slowdown in Beijing's recent infrastructure investment drive, industry executives said.
* Sunak to promise more spending to help UK economy. * Budget deficit set to reach around 20% of GDP. * Biggest borrowing since World War Two. * Savings may come in public sector pay, foreign aid. * Sunak says now is not the time for fixing finances. * Spending Review announcement expected around 1230 GMT. * By William Schomberg.
Britain's car industry body on Tuesday called on Brexit negotiators to clinch a deal by the end of 2020, saying failure to do so could cost the sector 55.4 billion pounds in tariffs by 2025 and undercut its ability to develop the next generation of zero-emission vehicles.
The aviation industry might not reach pre-crisis levels until 2025, Airbus' CEO said on Tuesday. A uniform approach to open borders and testing passengers was overdue in Europe, Guillaume Faury told an online aviation summit.
The aviation industry might not reach pre-crisis levels until 2025, Airbus' CEO said on Tuesday. A uniform approach to open borders and testing passengers was overdue in Europe, Guillaume Faury told an online aviation summit.
* Swift coordination helped prevent financial crisis - Kuroda. * Kuroda: uncertainty means policymakers must maintain stimulus. * Slumping profits, income may pose fresh banking sector risks. By Leika Kihara.
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