Vaccine boosts UK economy as new forecast shows GDP rebounding FASTER than previously thought

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Britain gets vaccination boost for economy as new forecasts show GDP will recover FASTER than previously thought thanks to incentives and easing of lockdown restrictions

  • The OECD has revised its forecast for UK GDP growth to 7.2% this year and 5.5% in 2022
  • This growth was driven by ‘recovery of consumption, especially services’
  • Proposed GDP is expected to return to pre-pandemic levels in early 202222

Britain got a vaccination boost today as a new projection showed the economy was recovering faster than previously expected thanks to the jab.

The Organization for Economic Co-operation and Development (OECD) has revised its forecast for UK GDP growth to 7.2 per cent this year and 5.5 per cent in 2022, following the success of the vaccination rollout and the easing of the lockdown. restrictions.

The transnational organization said growth was driven by a “recovery in consumption, especially services,” and GDP is expected to return to pre-pandemic levels by early 2022.

This puts its recovery on par with Canada and Italy, ahead of France but behind Germany, Japan and the United States.

However, the organization warned that, on average, the UK could see the largest decline in potential output growth among the G7 countries, while losses are estimated to be relatively small in Japan, Canada and the United States.

The Organization for Economic Co-operation and Development (OECD) has revised its forecast for UK GDP growth to 7.2 per cent this year and 5.5 per cent in 2022, following the success of the vaccination rollout and the easing of lockdown. limitations

Chancellor Rishi Sunak said: 'The strength of the UK's growth forecasts is evidence of the continued success of our vaccine roll-out and evidence that our Plan for Jobs is working.

Chancellor Rishi Sunak said: ‘The strength of the UK’s growth forecasts is evidence of the continued success of our vaccine roll-out and evidence that our Plan for Jobs is working.

The transnational organization said growth was driven by a

The transnational organization said growth was driven by a “recovery in consumption, especially services,” and GDP is expected to return to pre-pandemic levels by early 2022.

The decline in potential output growth in key euro area members could average 0.3 percentage points per year over the 2019-22 period, the report said.

“The UK could experience the biggest drop in the G7 countries (down 0.5 percentage points per year), in part due to the additional supply-side adverse effects from 2021 post-Brexit.”

Chancellor Rishi Sunak said: ‘The strength of the UK’s growth forecasts is evidence of the continued success of our vaccine roll-out and evidence that our Plan for Jobs is working.

“It’s great to see some early signs that the UK is recovering from the pandemic, but with debt close to 100 per cent of GDP we also need to make sure that public finances stay in good shape.

“That’s why I set out in the March budget the steps we will take to bring debt under control in the medium term; make sure our future recovery is sustainable.”

The OECD also warned that the global recovery is in a “critical phase” and could be uneven due to disparities in vaccine distribution worldwide.

“Maintaining the pace of vaccinations and responding to emerging virus mutations are important challenges for the future,” the forecast added.

Turning to the global outlook, it has revised its growth forecasts for the world’s major economies since the last full outlook in December last year, bringing global GDP growth to 5.8 percent this year.

Chief economist Laurence Boone said the latest OECD forecasts could give “hope” to people in countries hard-hit by the pandemic, who will soon be able to return to work and live normal lives.

He added: “But we are in a critical phase of the recovery.

“Vaccination production and distribution must accelerate globally and be supported by effective public health strategies.

Stronger international cooperation is needed to provide low-income countries with the resources – medical and financial – needed to vaccinate their populations.

‘The trade in health products must be able to flow freely.’

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