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Forecast in detail
Publication year - 2020
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.12522
Subject(s) - austerity , economics , government (linguistics) , pandemic , covid-19 , monetary economics , macroeconomics , political science , medicine , philosophy , linguistics , disease , pathology , politics , infectious disease (medical specialty) , law
The partial exit of the economy from lockdown conditions and the phasing out of fiscal support schemes should reduce government borrowing from recent wartime‐style levels. But the likelihood that the economy will be scarred by the pandemic implies that deficits could prove persistently higher than expectations before the Covid struck. That said, risk averse investors and central bank support should keep borrowing costs down and avoid the need for premature austerity.