Lockdown 3.0 Could See U.K. GDP Contract 4.5% in the First Quarter

The double dip U.K. recession Bloomberg Economics penciled in before Christmas is almost certain .

Dan Hanson

05 Jan 2021, 07:54 PM IST

Lockdown 3.0 Could See U.K. GDP Contract 4.5% in the First Quarter

A worker loads bundles of British pound banknotes into sorting machine in London, U.K. (Photographer: Jason Alden/Bloomberg)

(Bloomberg) -- The double dip U.K. recession Bloomberg Economics penciled in before Christmas is almost certain to be deeper than envisaged after England entered another lockdown to contain the spread of a more infectious variant of Covid-19. Prime Minister Boris Johnson on Monday set out the toughest restrictions since March, including school closures. Even if everything goes right and the roll-out of vaccines allows restrictions to be lifted by mid-February, GDP could contract by 4.5% in the first quarter, following a 1% fall in the final three months of 2020.