Covid won’t stop the UK from rising up and fighting back: The British economy is bouncing back stronger than ever.
Even after the year and a bit - how can we forget those other 4 months – that we have had, we are all looking for a sign that the UK economy isn’t going to crash and burn like our sanity almost did.
Well here’s that sign.
Despite industries being closed for the most part of covid restrictions, the CBI (The Confederation of British Industry) has foretold in their latest forecast that there will be a 8.2% growth in GDP.
GDP is the measure of Gross Domestic Product; this essentially is a measurement of the growth of the economy. This 8.2% growth is huge news. Especially as the CBI had originally forecasted only a 6% rise.
AND, the UK is bouncing back much quicker than other developed nations: “The UK economy will bounce back from the pandemic at the fastest rate among the developed nations, outpacing the eurozone, a report suggests. The International Monetary Fund (IMF) said it expected UK economic output to explode by seven percent this year - a pace it thinks will be matched only by the United States.” The bouncing back the economy is the news we all need to hear after the financial woes, unemployment rates, and isolating financial year we have just endured.
So why is this happening?
The Moovstuff team have put their heads together and researched to pull together this list of how, why, and the ways in which the economy is bouncing back and the positive figures that will reassure businesses across the country.
COVID vaccines Bouncing back, according to the Lead Economist at CBI, will peak over the summer thanks to the vaccine rollout allowing business to reopen and for public spending to support these businesses: “Successful rollout of COVID vaccines and an improvement in health outcomes means we are set for a bounce in growth over the summer,” says, Alpesh Paleja.
Spending This predicted bounce back is thus supported by the increase in spending from British households. Perhaps because we are all so excited to go out again and splash on experiences with loved ones. We have also spent the last year indulging ourself in home comforts to make life in lockdown more comfortable.
Brexit One of the Brexit benefits has been the drive of making some sectors more competitive. TUC (The Trades Union Congress) have announced that Brexit has boosted some profitability: “the referendum result has helped to make some sectors e.g. food production more competitive and has helped boost profitability and growth in tradable sectors.”
Employment Despite Unemployment rates having hit an all-time high at a peak of 5.5%, the labour market has withstood the effects of the pandemic better than CBI first predicted. For new graduates, unemployment rates were also at its highest at “6.3%,” revealed The Guardian. The Department for Education, following a survey, found that; “young people in England [were] hit hardest by job shortages due to pandemic.” However, due to the resilience, CBI now forecast that in 2022 unemployment rates will fall back down to 4.2%. With employment rates gradually on the increase, the economy can continue to safely bounce back.
The Drive of UK workers Here at Moovstuff we also want to recognise the adaptability and resilience of every UK worker driving the bounce back. Without our commitment together across the entire country to keep others safe and finding ways to work from home, the outcomes of this bounce back could never have been as positive. Our own business had a lot of obstacles to overcome due to covid, but like many other business and industries resilience allowed us to carve our own path through the pandemic and remain strong. As a country we are nearly in the clear, and all our hard work is paying off. Just in case no one has already told you we want to say; Well done for persevering.
We hope this was the positive news about the economy you were looking for. If you happen to want to know more about Moovstuff as a business check us out at Moovstuff.com and get a free instant quote on any or all of your moving needs for the easiest move of your life.