Double dip predicted

New Covid virus strain triggers market slump, double dip predicted The pound slumped on Monday along with global markets amid concern over the new strain of coronavirus identified in Britain, which has led to tighter restrictions, and the continued failure of the EU and the UK to agree a Brexit trade deal. Ruth Gregory, senior UK economist at Capital Economics, said the new lockdown measures “raise the chances that the economy stagnates, if not contracts, in the first three months of 2021.” Ms Gregory continued. “If the economy is heading for a double-dip, at least the second leg down will be much smaller than the first. But this is only because activity in some sectors never fully recovered and therefore cannot fall as far this time.”