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New restrictions to quell the virus will set back the recovery

A tightening in restrictions designed to quash the resurgence in new COVID-19 cases would set back the economic recovery. We’ll be in a better position to quantify the impact once the government announces its plan tomorrow. But if the government resorted to a two-week national lockdown at some point, that could reduce the level of GDP by 5% and set back the economic recovery by a year.

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