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Extra fiscal support to cushion the blow, but not eliminate it

The policy measures announced today by the Chancellor will go some way to cushioning the blow to the economic recovery from the new restrictions to contain COVID-19 and limiting the long-term hit to unemployment. But these actions won’t eliminate the hit entirely. That is why we think GDP will stagnate in the last three months of the year and take until end-2022 to return to its pre-crisis level.

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