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UK economy forecast to expand 15%, the largest GDP rise since founding of Union in 1707

© Alev Takil

The UK’s economy is forecast to grow at a record 15% next year according to the Bank of England.

With economic indicators looking extremely pessimistic in the short term, and the UK economy expected to take a hit from COVID-19, little has been said on the growth figures in 2021, which show a dramatic 15% GDP rise. News of the rebound potential boosted sterling on the markets early Thursday.

However, in 2020 it is expected that the UK will experience a sharp contraction worse than 2008 and the 1980s recession.

Businesses have had to halt activities, planes are grounded, and offices are empty but despite this reality, the fundamentals of the UK economy were strong before the pandemic, with unemployment under 4%.

While there will be a period of uncertainty and difficulty, UK businesses are set to benefit from a  record increase in demand across all sectors of the economy as people go back to work, and stalled business investments get unlocked.

There is also an additional factor, which is Brexit. During the downturn, there will be opportunities for businesses to position themselves differently in the global digital economy – and with new free trade agreements between nations, the coming years could see a revival of British industry too.