LONDON (Reuters) – British finance minister Rishi Sunak said on Friday the Bank of England’s new economic forecasts represented an improvement on the old ones, but he acknowledged that they show hardship lies ahead.

On Thursday the BoE said the economy would not recover its pre-pandemic size until the end of 2021, slightly later than its previous estimate, but its short-term projections were less grim.

“It’s an improvement from when they last did their forecast,” Sunak told BBC News.

“But… they are right to say that hardship lies ahead.”

Sunak also said he was optimistic a lot of the emergency government-backed loans given to companies during the pandemic will be repaid, and that a trade deal with the European Union was still possible in September.

“On Brexit, as you will have heard recent reports, we remain confident that it’s possible to get a deal in September,” he told Sky News in another interview.

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