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European countries are taking additional measures to deal with the surge in coronavirus infections, including a renewed lockdown in the Netherlands and tighter travel restrictions during the peak holiday season.

Meanwhile, debate continues over whether the new strain of the virus has less of an impact than its predecessor, and how effectively to combat the mutant strain.

"The economic impact of the virus itself is relatively limited. What has an impact on the economy is the fear of the virus, " said Donovan, Group Chief Economist, UBS. "This was the first virus with a social media hashtag, which increased the fear of the virus and affected the economy. "What we have to realize now is that the level of fear has gone down a lot as vaccination has become more widespread."