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While growth momentum is expected to decelerate until a booster is rolled out to halt the rise in cases, the full impact will depend on the rise in the number of acute COVID-19 cases and any social distancing restrictions that are introduced.
However, current government efforts to control the pandemic with minimal restrictions could see a relatively small impact on economic growth.
Labour shortages have become a significant impediment to growth and pay pressures more pronounced, but the labour market appears to have weathered the end of the furlough scheme.
High level of uncertainty about the Omicron variant is expected to see the Bank of England hold off raising interest rates in December 2021 - but how long will this last?
Please find the UK Economic Outlook December 20201 report here
Join Yael Selfin Chief Economist, KPMG in the UK, in conversation with Airmic CEO, Julia Graham.