New lockdown restrictions will set back economic growth by a year - Capital Economics

Policy response depends on 'severity' of new restrictions

Lauren Mason
clock • 4 min read

A ‘circuit-breaker’ lockdown in October and a 10pm curfew on restaurants and pubs could set the UK’s economic recovery back by a year, according to the latest report from Capital Economics, with a two-week national lockdown alone potentially reducing GDP by 5%.

This comes following chief medical officer Chris Whitty's address to the nation yesterday (21 September), which noted the virus had "turned a corner" and that "speed" and "action" are required to prevent the number of new cases rising exponentially. Now, with Prime Minister Boris Johnson set to announce new measures during a press conference today (22 September), Capital Economics believes the UK's recovery - which has so far been "brisk", having estimated that three-quarters of the 26% plunge in GDP will have been recouped by the end of the month - could begin to "slow in pace". "Of ...

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