While the new year has started much like 2021 did, with a surge in Covid cases and consumers becoming more cautious, the response of governments has been markedly different. In general, blanket closures of retail and hospitality have been avoided, replaced primarily by covid passes that restrict access to many venues to the vaccinated. Although restrictions may need to be tightened a bit further in the coming weeks, the economic hit is likely be fairly small and hopefully short-lived, so we still expect GDP to increase in Q1.
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