play_arrow

keyboard_arrow_right

skip_previous play_arrow skip_next
00:00 00:00
playlist_play chevron_left
chevron_left
  • cover play_arrow

    Rother Radio (128k) Love Local, Love Music!

  • cover play_arrow

    Rother Radio (64K) Love Local, Love Music!

  • cover play_arrow

    Hit Music Radio (128K) More Music Variety!

  • cover play_arrow

    Hit Music Radio (64K) The Best Variety of Hits!

Business News

UK economy forecast to see strongest annual growth since 1941

today26/04/2021

Background
share close

The UK is on course for its strongest annual growth since the Second World War after a resilient performance through latest lockdowns, according to a respected economic forecaster.

Gross domestic product (GDP) is expected to expand by 6.8% this year, according to the EY ITEM Club – which would be the fastest pace since 1941.

Another forecast, from Goldman Sachs, predicts a “striking” growth rate of 7.8%, stronger than its expectation for the US, where Joe Biden’s multi-trillion dollar stimulus effort is firing up recovery.

Please use Chrome browser for a more accessible video player

COVID-19: How is the UK economy doing?

A bounce-back in 2021 already looked inevitable after UK GDP suffered a 9.8% slump in 2020 as the COVID-19 pandemic crushed economic activity.

That was the biggest annual decline for three centuries and the worst performance among the G7 group of major advanced nations.

But the “innovative and flexible” response of UK businesses and consumers to the pandemic means forecasters are now upgrading how strong they think the bounce-back will be.

The EY ITEM Club had previously pencilled in 5% growth for this year – a figure previously matched in 1997 – with the performance held back by the impact of lockdowns in the early part of the year.

More from Business

But it now estimates that the economy only shrank by just over 1% in the first quarter, not the 3-4% contraction previously feared.

The current April-June period alone is predicted to see growth of 4-5%, helped by the reopening of the economy and continued support from government spending and Bank of England policy.

The latest report from EY ITEM Club – which uses the Treasury model for the UK economy – also suggests that the economy will return to its pre-pandemic level by the second quarter of next year, three months earlier than previously predicted.

Howard Archer, chief economic advisor to the EY ITEM Club, said: “The UK economy has proven to be more resilient than seemed possible at the outset of the pandemic.

“Businesses and consumers have been innovative and flexible in adjusting to COVID-19 restrictions and, while restrictions have caused disruption, lessons learned over the last 12 months have helped minimise the economic impact.

“Our latest forecast suggests that the UK economy will emerge from the pandemic with much less long-term ‘scarring’ than was originally envisaged and looks set for a strong recovery over the rest of the year and beyond.”

The International Monetary Fund currently predicts UK growth of 5.3% for 2021, with the Bank of England pencilling in 5% expansion and the Office for Budget Responsibility (OBR) just 4%.

 Sky News

© Sky News 2021

Written by: Rother Radio News


Previous post

World News

Hopes for ‘revival’ of Chernobyl site 35 years on from nuclear disaster

Ukrainians are hoping the Chernobyl site will become "a zone of development and revival" - 35 years after the world's worst nuclear accident spilled radioactive material high into the atmosphere.On 26 April 1986, reactor number four at the power plant, which is 65 miles north of the capital Kiev, exploded and caught fire. Although the nearby town of Pripyat was evacuated, the two million residents of Kiev were not told […]

today26/04/2021


Search Rother Radio

About Us

Rother Radio – Love Local, Love Music! → Discover more