New lockdowns threaten economic recovery – Covid second wave gathers pace

22 September 2020 (Last Updated September 22nd, 2020 09:09)

22 September

Countries across Europe including the UK, Spain and France are witnessing a surge in the number of Covid-19 cases.

Some of these countries have just started showing signs of economic revival and new lockdowns to control the recent surge in cases may have serious consequences.

Daniel Lacalle, chief economist at Tressis SV, shared his article on the possibility of imposing new lockdowns in Europe.

Lacalle notes the lockdowns will have devastating impact on the economy through jobs losses and business insolvencies.

Countries such as South Korea, Taiwan, Sweden, and Austria have implemented effective measures to control the pandemic instead of implementing a total lockdown, the article noted.

Lacalle added that economies in Europe will not be able to survive a new series of lockdowns as it may lead to an economic crisis characterised by massive job losses, highly indebted corporations, and record high government debt.

Meanwhile, the epidemic in the UK appears to be doubling every seven days, according to the government’s chief scientific advisor.

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