Another lockdown could cost the UK economy £ 30bn
Economists warn UK economy could take Â£ 30bn and see supply shortages worsen if government enforces another lockdown
Britain’s economy could take a severe blow of Â£ 30 billion and see supply shortages worsening if the government enforces another lockdown, economists have warned.
Boris Johnson vowed that Britain would not be plunged into another full lockdown, but refused to rule out a ‘Plan B’ option that included ‘light’ measures, such as vaccine passports, masks and labor. residence.
Panmure Gordon chief economist Simon French said: “The unlikely but unofficial Plan C is a complete lockdown, if a vaccine-fighting variant emerges. It would bring down the bottom of suburban centers and cause more more problems with supply chains as people move away from spending on services to buy products.
Signature: Boris Johnson vowed Britain would not be plunged into yet another full lockdown, but declined to rule out ‘Plan B’ option
France is forecasting 7% GDP growth – around Â£ 140 billion – for 2021 if the Covid situation does not worsen. He said a Plan B approach would affect spending by businesses, from cinemas to hairdressers, causing production to drop to as much as Â£ 10bn, and a similar hard lockdown to the first three months of the year could cost Â£ 30 billion.
Neil Shearing, Group Chief Economist at Capital Economics, said: “The economy has become more resistant to lockdowns and the impact will be softer than with the first lockdown.”
GDP fell 20.4% in the second quarter of 2020 – during the UK’s toughest lockdown – but only fell 1.5% in the first quarter of this year.
Nomura’s UK chief economist George Buckley doesn’t expect the economy to return to pre-pandemic health until next spring.