Lockdown 2.0 Means Markedly Slower U.K. Rebound

(Bloomberg) -- The U.K. government’s new restrictions are likely to have a modest impact on gross domestic product, but add in concerns generated by the rising risk of infection, and Bloomberg Economics now thinks the slowdown over the next six months will be more marked than previously anticipated. After rising by 17% in the third quarter, BE now expects GDP to expand by just 1% in the final three months of the year. BE also forecasts expansion at the start of 2021 will be significantly slower, with output rising just 0.5% -- that leaves GDP 7.5% below its pre-virus level in the first quarter of 2021.

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