Category Archive: Coronavirus analysis

Line chart showing how a three-month lockdown could see output fall by a third this quarter

Coronavirus lockdown to deliver large (but hopefully temporary) shock to the economy and public finances

In addition to its impact on public health, the coronavirus outbreak will substantially raise public sector net borrowing and debt, primarily reflecting economic disruption. The Government’s policy response will also have substantial direct budgetary costs, but the measures should help limit the long-term damage to the economy and public finances – the costs of inaction…