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Virus-hit global demand to weigh on the UK

The failure of the Chinese economy to recover promptly from the measures put in place to contain the coronavirus means that world demand growth will be softer than we had anticipated this year, but probably a bit stronger next year. As a result, we have downgraded our 2020 UK GDP growth forecast from 1.0% to 0.8% and upgraded our 2021 forecast from 1.8% to 2.0%. A widespread outbreak in Europe, the US, and the UK remains a risk to our forecast.
Andrew Wishart Property Economist
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Increased risk of “second-round” effects

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More from Andrew Wishart

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Should we be worried about rental arrears?

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UK Housing Market Data Response

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The looming end of the stamp duty holiday has only applied the slightest dab to the brakes of the housing market thus far. But while the new buyer enquiries started to ease, sales instructions fell more sharply suggesting that strong demand relative to supply will continue to push up house prices in the near term.

10 June 2021
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