Dear Kizzi,
The dip in output for November will not come as a surprise as the majority of the country went into a second lockdown, and we are likely to continue to see fluctuation as the economy continues to grapple with varying restrictions, with the hospitality and leisure sectors the most likely to continue to be directly affected by these measures. Whilst economic contractions are unsustainable in the long term, we do expect GDP to trend upwards as the vaccination programme is rolled out and restrictions are consequently eased. In the meantime however, it has been reassuring to witness that investor confidence remained positive during this period of tighter restrictions, particularly in the early-stage venture capital sector, with interest in Deepbridge’s technology and life sciences companies seeing record inflows for Q4.
Ian Warwick, Managing Partner at Deepbridge Capital