When the UK economy tanked in Q2 this year as the country went into lockdown – and adspend with it – many people hoped for a V-shaped recovery.
Is there anything to look forward to? Report author IHS Markit is forecasting an -11.2% contraction in GDP during 2020 as a whole including a 13.2% reduction in consumer spending and 20% decline in business investment (which includes marketing.)
It foresees a 4.6% expansion in GDP and 11.3% rise in ad spending during 2021, followed by a steady trend towards long-term growth rates. This, though, depends on somehow or other managing the virus and securing a reasonable exit deal with the EU, which doesn’t look all that likely either.