UK economy to grow fastest in 80 years, EY Item Club forecasts
The UK economy is expected to grow at its fastest pace in 80 years, according to forecasts from forecasting group the EY Item Club.
UK production is set to skyrocket by 7.6 per cent this year – up past previous estimates of 6.8 per cent – in the strongest increase since 1941.
Moving again: the economy will now return to its pre-pandemic peak by the end of 2021
The upgrade was driven by the rapid rollout of vaccines and improved expectations of a recovery in household spending, according to the Item Club.
Households are estimated to have saved around £200 billion since the initial lockdown last year, and are gearing up to deposit that money as restrictions ease.
Better-than-expected growth will now see the economy return to its pre-pandemic peak by the end of 2021 – two quarters earlier than expected in April and nearly three years earlier than the Item Club forecast last summer.
EY now expects growth of 6.5 percent next year, up 5 percent, followed by 2.1 percent in 2023 and 1.6 percent in 2024.