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Credit crunch is biggest risk to our Covid recovery

David Chance


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Government support for companies during the pandemic have been so effective that bankruptcies have barely budged despite the huge hit to the economy.

The biggest risk to a post-Covid economic recovery is expected to come from firms that have been kept alive during the pandemic but fail once those supports are withdrawn, or linger on as ‘zombies’, unable to invest and hire due to their crippling debts.


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