Kate Andrews Kate Andrews

Whitehall’s Covid gloom could harm our economic recovery

As the government continues to put forward an extremely cautious narrative about re-opening, more evidence emerged today that the economy is surging ahead. The International Monetary Fund has once again upgraded its forecast for Britain’s growth this year: its April prediction of 5.3 per cent growth in 2021 has now been revised upward to 7 per cent. If correct, the UK could boast one of the fastest growing economies amongst major countries, with a recovery looking to be on par with the United States.



Today’s update from the IMF fits a trend. Just this weekend the EY Item Club forecast 7.6 per cent growth this year – the fastest rate of growth in Britain for 80 years. These forecasts join a list of increasingly optimistic predictions for economic recovery, which include heavy hitters like the Bank of England as well.



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