Skip to main content

Chancellor may have to spend more when the recovery slows

Our view that, after an initial vigorous rebound, the economic recovery from the coronavirus crisis will slow later this year suggests that the further loosening in fiscal policy announced by the Chancellor this week won’t be the last. Next week’s release of the OBR’s Fiscal Sustainability Report will generate more talk about how government debt will be brought back down. But a major lurch to austerity in the next few years at least seems very unlikely.

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


Get access