Britain unveils fresh $37 billion package to stimulate economy – Gulf Today

Britain unveils fresh $37 billion package to stimulate economy – Gulf Today

Equity markets mixed as coronavirus fears dampen sentiment

Britain has suffered Europe's deadliest outbreak of COVID-19 and a nationwide shutdown led to the worst economic downturn among the G7 leading industrialised states.

Sunak said the UK economy had contracted by 25 per cent over the coronavirus lockdown -- "the same amount it grew in the previous 18 years".

The chancellor also confirmed £3-billion of green investment, after British Prime Minister Boris Johnson vowed to "build, build, build" out of the economic crisis.

The investment package includes £2 billion in grants for households to insulate homes and make them more energy efficient, and £1 billion for public sector buildings, including hospitals.

The plan is part also of Britain's long-term pledge to reduce carbon emissions to net zero by 2050 to tackle climate change.

Britain imposed a nationwide lockdown on March 23 to halt the spread of COVID-19 but has gradually begun easing restrictions to help ailing businesses, including pubs and hair salons.

Recent official data show the UK's biggest quarterly contraction for more than 40 years -- at minus 2.2 per cent -- in the January-March period.

However, the data included only the first full week of the lockdown -- and Sunak suggested on Wednesday that the second quarter