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%.
Sources: bbc.com, thetimes.co.uk