Britain Set for Best Growth Since Second World War: Bank of England
The Bank of England has forecast the economy will grow this year at its fastest pace since the Second World War as Britain stages a vaccine-fuelled recovery.
The Bank predicts gross domestic product (GDP) a measure of the size of the economy will rebound by 7.25 percent in 2021 up from its previous prediction of 5 percent and the best year of growth since 1941. It comes after the pandemic saw the UK suffer the biggest drop in output for 300 years in 2020, when it plummeted by 9.8 percent.
The rapid progress of the COVID-19 vaccine rollout and the lifting of restrictions is seeing the economy rebound sharply as consumers spend savings built up over lockdown. The Bank now sees growth reaching pre-pandemic levels at the end of 2021, having previously said it would not recover until the beginning of 2022.
BoE set to hike UK growth forecast on Covid recovery It comes as the BoE is widely expected to leave its key interest rate at a record-low 0.1% and maintain its stimulus programme pumping vast sums around the economy. Pedestrians walk past the Bank of England (L) and the Royal Exchange in the City of London on 31 July 2017. Picture: AFP.
22 days ago
LONDON - The Bank of England is set to hike its economic growth forecasts on Thursday as the UK gradually exits lockdown restrictions thanks to the country s rollout of Covid-19 vaccines.
It comes as the BoE is widely expected to leave its key interest rate at a record-low 0.1% and maintain its stimulus programme pumping vast sums around the economy.
The Bank of England is set to hike its forecasts for the UK economy on Thursday as the vaccination programme and easing of lockdown help to boost Britain’s recovery.
Policymakers at the Bank are expected to “significantly” upgrade their growth outlook as they keep interest rates on hold at 0.1%, according to experts.
While the latest lockdown is predicted to see gross domestic product (GDP) – a key measure of the economy – fall once more between January and March, it is thought the hit will be far less than first feared as the economy becomes increasingly resilient.
GDP rose 0.4% in February, after a 2.2% fall in January, even though England was still in full lockdown.
The Bank of England is set to hike its forecasts for the UK economy on Thursday as the vaccination programme and easing of lockdown help to boost Britain s recovery.
Policymakers at the Bank are expected to significantly upgrade their growth outlook as they keep interest rates on hold at 0.1 per cent, according to experts.
While the latest lockdown is predicted to see gross domestic product (GDP) - a key measure of the economy - fall once more between January and March, it is thought the hit will be far less than first feared as the economy becomes increasingly resilient.
GDP rose 0.4 per cent in February, after a 2.2 per cent fall in January, even though England was still in full lockdown.
Britain s swift economic recovery following the latest lockdown looks set to prompt the Bank of England s top brass to hike the country s growth forecasts on Thursday.
Experts at the EY Item Club think the BoE will bolster gross domestic product predictions for the next few years significantly at its next Monetary Policy Committee meeting.
On Friday, Barclays published figures suggesting the economy could grow by 6.5 per cent this year, marking the best rate of growth since records began in 1948.
Decision time: Andrew Bailey and his team of policymakers are expected to hike growth forecasts
While the latest lockdown is predicted to see GDP fall once more between January and March, the hit is expected to be far less than first feared as the economy becomes increasingly resilient amid the mass rollout of vaccines.