Britain may be about to go from one economic extreme to another. This winter the OECD calculated Britain suffered one of the highest levels of economic damage in the developed world, compared with the year before, due to its stringent lockdown. Fast forward to spring and the UK’s trajectory for economic recovery is now being revised, with forecasts only moving in one direction: up.
Today alone, two heavy hitters boosted their predictions. This morning EY Item Club revised its 2021 growth forecast from 5 per cent to 6.8 per cent – which, if accurate, would see the UK grow at its fastest rate on record, recovering to pre-pandemic levels months earlier than originally anticipated. Goldman Sachs followed in the afternoon, publishing one of the most bullish forecasts for 2021 to date: estimating a staggering 7.8 per cent growth – nearly double the Office for Budget responsibility’s forecast for the year (it’s much closer to what the public body predicts for 2022).
Goldman Sachs’ forecast suggests the UK will outpace America’s recovery, which it also upgraded to 6.8
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