‘Pingdemic’ could delay the return of GDP to pre-pandemic levels, says IEA expert
16 July 2021
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In the Media
Christopher Snowdon writes for The Spectator
15 July 2021
Coronavirus
Economic Theory
Responding to reports that 520,000 people were told to quarantine by the NHS app last week, Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, said:
“The economic hit from the ‘pingdemic’ is unlikely to be large; for example, 500,000 people is less than 2 per cent of the total UK labour force. Nonetheless, the loss of both staff and customers will be very disruptive for some businesses and might delay the return of overall GDP to pre-pandemic levels by a few months.
“This could be a price worth paying for a more sustainable recovery in the longer term, if it helps to prevent the latest wave of Covid from getting out of control. But there is also the risk that overly sensitive app settings undermine confidence and hold back the recovery unnecessarily.”
ENDS
Notes to editors
Contact: Annabel Denham, Director of Communications, 07540 770 774
IEA spokespeople are available for interview and further comment.
“The economic hit from the ‘pingdemic’ is unlikely to be large; for example, 500,000 people is less than 2 per cent of the total UK labour force. Nonetheless, the loss of both staff and customers will be very disruptive for some businesses and might delay the return of overall GDP to pre-pandemic levels by a few months.
“This could be a price worth paying for a more sustainable recovery in the longer term, if it helps to prevent the latest wave of Covid from getting out of control. But there is also the risk that overly sensitive app settings undermine confidence and hold back the recovery unnecessarily.”
ENDS
Notes to editors
Contact: Annabel Denham, Director of Communications, 07540 770 774
IEA spokespeople are available for interview and further comment.
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