United Kingdom: Back to 1999… and to the future

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Part Two of this Five-part series of Insights into the UK economy and financial markets examines the critical role played by the British government, which continues to pump tens of billions into the economy via a vast array of measures, including a furlough scheme, to support household disposable incomes and ultimately consumption and GDP growth. Households’ limited opportunities to spend, rather than the acute drop in consumer confidence and constraints on purchasing power, was the main cause behind the fall in domestic consumption in March-April and record collapse in GDP. Retail sales i
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