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17 May 2021
UK economy post-COVID
Unsplash © Anna Dziubinska

With restrictions lifting, here’s what you need to know about the UK economy

Every week, Maddyness curates articles from other outlets on a topic that is driving the headlines. This Monday, we look at predictions for a 'booming' economy in the short-term, and what might come next.

Booming UK economy to outpace US, says Haldane

The UK economy is set to grow at its fastest pace since the Second World War, overtaking the US, according to Bank of England economist Andy Haldane. Low COVID infection rates and vaccinations are leading to a surge in consumer spending, he said. The unemployment rate is also lower than expected. However, there is a risk of 1970s-style inflation rates with “boom turning to bust”, he added. Read the full article via BBC News.

UK economy, gearing up for recovery, grows more than expected in March

Britain’s pandemic-battered economy grew more strongly than expected in March as it gathered speed for a bounce-back from its coronavirus slump of 2020, official data showed on Wednesday. The 2.1% growth from February was led by the reopening of schools which, alongside COVID-19 testing and vaccinations, pushed up activity in the public sector and by retailers as consumers spent some of their lockdown savings. Read the full article via Reuters.

The Guardian view on the UK economy: vaccine bounce? This is a vaccine bubble

Prepare for an almighty sugar rush. There are signs everywhere of a summer spree across the post-lockdown economy. Restaurants and pubs report a flood of bookings. Estate agents in some parts of the country talk of the most buoyant market in 25 years, with six or seven serious buyers jostling for every home on sale. In industry, construction and manufacturing are both humming along. Forget all that talk of a vaccine bounce; this has all the makings of a vaccine bubble. Read the full article via The Guardian.

The lords of global finance smile again on Britain’s economy

Global banks are scrambling to raise their UK growth forecasts for this year, expecting the British economy to roar back to life over coming months and regain pre-pandemic levels of output much sooner than expected. Job postings are soaring, led by catering, hospitality, and services. Credit card spending is already well above the pre-COVID volumes. “It’s off to the races,” said Steffan Ball, the bank’s chief UK economist. Read the full article via The Telegraph.

Josie Dent, Managing Economist at the Centre for Economics and Business Research, sees sectors in the U.K., like arts and entertainment, benefiting from pent-up consumer as the economy reopens. She spoke to Bloomberg’s Anna Edwards. Watch the video via Bloomberg TV