The UK will suffer the sharpest economic slump of any major economy this year, Moody’s has warned.

The rating agency’s top analysts are predicting 10.1 per cent contraction in gross domestic product (GDP) this year. They also forecast that the UK’s public debt ratio will rise by 24 percentage points of GDP or more relative to 2019 levels, adding further pressure to the UK’s fiscal position.

“We forecast a contraction of 10.1% in the UK’s GDP for this year, but expect a gradual subsequent recovery on the back of the easing in lockdown measures, with growth rebounding to 7.1% next year,” they said.