UK economy to fully recover in mid-2022
Britain’s economy is expected to return to its pre-coronavirus level around the first half of next year. Economists surveyed by Reuters also predicted that the country’s unemployment rate would see a 6.2% hike as the pandemic job support scheme ends this year.
In 2020, the economy reached its historic low in more than three centuries. Despite this, economists said that it would accelerate 5.0% this year and 5.5% in 2022.
With subdued economic activity and tighter pandemic-related measures, the economy likely contracted 2.3% in the first quarter. But with the country’s gradual easing of restrictions, a 3.5% growth is expected this quarter.
Britain’s labor market was faring well with the help of a massive government furlough scheme. However, the momentum would be fleeting as the scheme is set to end in September. This, in turn, resulted in a 6.2% prediction in the country’s unemployment rate.