In providing a framework for thinking about how Omicron could impact the UK economy and policy-making, Chief UK Economist Paul Dales explains how GDP isn’t as far below pre-crisis levels as it was at the start of the January 2021 lockdown, implying there’s more room for it to fall in the event of another lockdown. “That said, as businesses and households have adapted, each successive lockdown has damaged the economy by less,” he notes.
Related report: Omicron – The risks to GDP and for the BoE
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- Although it’s very early days, we’re grappling with the question of how Omicron could affect economies and markets. You can read all our key coverage on our Omicron page.
- Our UK team recently examined why UK exports are underperforming. They conclude that Brexit – which is being blamed for the shortfall – doesn't tell the whole story.