UK economy set to grow rapidly once COVID restrictions are relaxed

In its latest report, the Bank of England (BoE) has predicted that the UK economy will grow at its fastest rate in more than 70 years in 2021 as COVID-19 lockdown restrictions are eased.

07 May 2021

In its latest report, the Bank of England (BoE) has predicted that the UK economy will grow at its fastest rate in more than 70 years in 2021 as coronavirus (COVID-19) lockdown restrictions are eased.

The Bank expects the economy to grow by 7.25% this year. At their latest meeting, bank policymakers voted to hold interest rates at a record low of 0.1%.

The BoE's report outlined that UK GDP is expected to rise by around 41/4 % in the second quarter of 2021 as more people are vaccinated and COVID restrictions are relaxed. The Bank stated that high-frequency indicators of economic activity, including motor vehicle traffic, retail footfall and restaurant bookings, have picked up over recent weeks.

However, the Bank also revealed that the economy shrank by almost 10% in 2020, marking the sharpest decline in 300 years.

Its report stated: 'GDP is expected to rise sharply in 2021's second quarter, although activity in that quarter is likely to remain on average around 5% below its level in the fourth quarter of 2019.

'GDP is expected to recover strongly to pre-COVID levels over the remainder of this year in the absence of most restrictions on domestic economic activity.'

Try a site search Tax return, dividends, pension...

Company details

01293 855425

Harding + Associates LLP, Copthorne Business Suite, Copthorne Way, Copthorne, West Sussex RH10 3PG

ICAEW Firm No. C006101380

About us

Mike Harding, owner of Harding + Associates, has been working in practice for over 25 years. With his wealth of experience and knowledge gained over the years, Mike decided to branch out and start his own practice, bringing with him his support team, alongside his loyal clients.

© 2021 Harding + Associates LLP. All rights reserved. We use cookies on this website, you can find more information about cookies here.
Harding + Associates LLP are Accountants in Crawley