Surging coronavirus infections will derail the economic recovery, the government’s official forecaster has warned.
New restrictions on trade, combined with behavioural changes caused by the jump in cases, would “put the recovery on hold”, Sir Charlie Bean, a senior member of the Office for Budget Responsibility, told MPs.
Until the autumn, it had “looked pretty much like our upside scenario” for a V-shaped recovery, he said. Since then, the key thing was the resurgence in cases. “It is reasonable to think that this is going to put the recovery on hold for a while,” Sir Charlie said. “You certainly might expect that with heightened risk, consumers will be more wary about going to bars and shops.”
The OBR will publish its latest forecasts for growth,
