The UK economy despite being pulled back by the pandemic, is seeing its fastest growth rate in over 80 years. And with this, they might even recover sooner than expected to their pre-pandemic size by the end of this year according to forecasts.
After the mass vaccination rollout, consumers are looking more and more eager to spend their money leading to speculation that the expected GDP could grow by 7.6% undeniably the fastest annual growth income since 1941.
Despite the chaos due to the shortage of workers and self-isolation, the economy took a turn for the better proving that it’s more resilient even with the lockdown. But the EY Item Club still warns that if the condition worsens, the economy might eventually have to take a step back in an effort to curb the infection.
The UK economy is more dependent on consumer spending on services, such as recreation and leisure activities, which meant that the lockdowns had a greater economic impact than in other countries, said Martin Beck, the EY Item Club’s senior economic adviser. The reopening of these “face-to-face parts of the economy means the UK should have a correspondingly faster recovery”, he said.
In the spring, the group of economists, which is the only non-government forecasting organisation to use the Treasury’s modelling of the economy, pencilled in growth of 6.8%. This is the second time this year it has upgraded its forecast, putting the economy on track to attain its pre-pandemic peak by the end of 2021. That milestone would now be reached some six months sooner than when it last crunched the numbers in April, with the UK’s successful vaccine programme a key factor.
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Source : The Guardian