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Second Lockdown in London Could Cost £2bn

A recent study by the Centre for Economics and Business Research (CEBR) estimates that a second lockdown amid a resurgence in coronavirus cases could cost London £2bn in annual costs. The mayor of London, Sadiq Khan, as well as health secretary Matt Hancock are considering imposing a fresh lockdown as cases continue to surge.

The CEBR states that economic recovery could be impacted if a second lockdown is imposed, but consumer and business confidence may not decline further. It has also expressed hope that more fiscal measures could support the economy in such a scenario. The study indicates that several companies face the threat of going under due to the trying circumstances caused by the ongoing coronavirus pandemic.

At the height of the lockdown, north east England was losing around £70m a day, about 34% of gross value added (GVA) or its contribution to the GDP. In case the region goes back into another lockdown, the GVA costs will be roughly the same.

However, a partial lockdown could offer more hope, both to the economy and in controlling the spread of infections. The CEBR has also revised its estimates for Q4 GDP, cautioning that it could be 3-5% lower than the Q3 GDP.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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