Article Hero

British economy set for strong post-pandemic recovery

1622539774.png
Miguel A. Rodriguez
Miguel A. Rodriguez
01 June 2021
The Organisation for Economic Co-operation and Development suggested that the UK could recover faster-than-expected from the economic damage caused by the pandemic

According to data from the Organisation for Economic Co-operation and Development, the UK’s economic recovery from the pandemic is likely to grow 7.2% in 2021. The forecast was revised upwards from March’s projection of 5.1%, and the economy is expected to grow at the fastest pace since World War II.

The UK’s growth is set to be the most rapid among the large, rich countries, according to the same data. Rishi Sunak, UK Chancellor, believes that the strength of the forecast is due to the successful vaccine rollout and the government’s Plan for Jobs. Still, as the country’s debt is almost 100% of GDP, there is a need to “ensure public finances remain on a sure footing.”

The OECD recommends the UK government maintain support measures until the economic recovery is underway, focusing on businesses and sectors with the best growth prospects. In the medium term, a close trade relationship with Europe could benefit the UK.

Moreover, OECD’s outlook for the global economy had strengthened as activity returned to pre-pandemic levels. It raised the 4.2% growth touted in December to 5.8%. The increase will be primarily led by the US, where GDP is seen at 6.9%.

At the moment of writing, UK100 is trading 1.13% higher, while GBP/USD reached a three-year high at 1.425.

Sources: bbc.com, thetimes.co.uk

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.