The number of new virus cases hit record highs this week as the Delta variant is now spreading widely. While the vast majority of the elderly are now fully vaccinated and deaths have remained low, the number of hospitalisations has surged. With the government acknowledging that the medical system risks being overwhelmed, calls for a nationwide state of emergency or a “hard” lockdown have grown louder, which poses downside risks to our forecast that the economy will merely tread water this quarter.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services