The strikes in December won’t help the economy when it is probably already in recession. But we think real GDP may only be around 0.0-0.5% lower in December than otherwise. More important may be larger pay rises on the back of the strikes possibly leading to wage growth being stronger than otherwise, which might mean inflation takes longer to fall back to the 2.0% target.
We will be discussing the decisions of the BoE, the Fed and the ECB in a Drop In on Thursday 15th December at 3pm GMT. (Register here.)
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services