How much has the car scrappage scheme boosted growth?

We estimate that the car scrappage scheme has boosted UK GDP by just 0.1% or so per quarter. Nonetheless, the end of the scheme could still dent growth if consumers brought forward spending to take advantage of the scheme. And the expiry of overseas schemes is likely to pull down UK exports. In any case, there are plenty of other reasons for the economy to relapse this year.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.