Savage third lockdown to spark double dip recession costing £390million daily

The Daily Star’s FREE newsletter is spectacular! Sign up today for the best stories straight to your inbox

The third current lockdown could send Britain into a double dip recession and cost £390million a day, it has been warned.

Prime Minister Boris Johnson announced a national lockdown on Monday, shutting non-essential shops and businesses.

However, the move is expected to send the country into its first double dip recession since 1975.

According to a think tank, the first quarter of 2021 will bring in £24.57billion less than without a national lockdown.

It is hoped by Johnson he will be able to ease the tougher rules in mid-February if cases remain low enough.

But until then restrictions will cost £390million every working day, predicts The Centre of Economics and Business Research (CEBR).

With the vaccine rollout set to be in full flow shops could reopen – however experts predict growth will be slashed in 2021, reports Mail Online.

Before the national lockdown was announced, marking the third since March last year, Howard Archer, of the EY Item Club economic forecasting group predicted a growth of 6.2% in 2021.

However – with the frustrating start to the year he predicts output or Gross Domestic Product will grow more than 5.5%.

  • Brits go on panic-buying frenzy in supermarkets on first day of lockdown 3.0

Mr Archer said: "With restrictions now in place in most areas of the UK, the EY Item Club expects the economy will have a challenging start to 2021 and will likely see modest contraction in the first quarter. This would result in a double dip recession."

Last year the coronavirus pandemic caused UK to hit its first recession in 11 years, which means there has been economic contraction in more than two consecutive quarters of the year.

With another one, a double dip recession is likely.

The third lockdown will hit the UK harder than November's one, according to Allan Monks, an economist at the investment bank JP Morgan.

But in a more positive view, Mr Archer said: "We expect the economy to benefit progressively through 2021 from the rollout of the vaccine."

Mr Monks added: "We assume the level of GDP at the end of this year will not be materially lower due to a successful vaccine rollout."

  • Coronavirus

Source: Read Full Article