Both the Bank of England and the UK’s leading business members’ organisation believe the economy is set to take off after the vaccine bump.
GDP (Gross Domestic Product) is expected to rise sharply in the second quarter as lockdown eases. Bank economists say this is a result of the vaccine rollout and the fastest predicted economic growth for decades.
Adding to its report, the Bank of England says COVID-19 precipitated the largest drop in UK output for 300 years last year when it plummeted by 9.8 per cent.
However, throughout 2021 a GDP rebound of 7.25 per cent is forecast, higher than the previous prediction of five per cent.
Meanwhile, the Confederation of British Industry (CBI), which claims to speak for 190,000 businesses in the country, is bullish about the future as it unveiled its recovery plan.
Earlier this month, the Bank of England’s Monetary Policy Committee said it would maintain the institution’s previous course and that the country’s Coronavirus vaccine rollout was helping the economy recover.
The CBI seems to agree and has rolled out its strategy that it believes will transform the economy in six different ways in the decade ahead.
CBI Director-General Tony Danker revealed key points in the plan which highlighted key areas:
- A decarbonised economy – Where the UK genuinely leads the world to net-zero and gains competitive advantage from doing so.
- An innovation economy –Where innovation in all its forms drives economic prosperity and social progress.
- A globalised economy – Identify how the UK’s world-beating capabilities in financial and professional services, life sciences, education, information and communication can help secure billions in added value, from fast-growing markets, such as the US, India, and China. And how to help SMEs who don’t export, to get started.
- A regionally thriving economy –Where there is a new and comprehensive approach to scaling-up economic clusters – on everything from advanced manufacturing to hydrogen power to financial services – in our regions and nations.
- An inclusive economy – Set out how to tackle the UK’s skills shortages, by helping people move more easily between jobs where skills align.
- A healthier nation –The CBI lays out how existing health interventions from employers – such as help to deal with back or muscular problems; or of course mental health support – can reduce sick days by almost a third, as well decrease the UK’s overall disease burden.
With things starting to look up for the UK economy, businesses must take steps now to overcome the latest challenges and rebuild.