British households have built up a massive £100 billion of extra savings this past year which could be unlocked as the UK economy rebounds in 2021.
With lockdowns and restrictions affecting people’s spendings habits, holiday plans and outdoor activities, a large cash surplus is waiting to be unlocked in the UK economy.
The estimates of £100 billion could help to revive Britain’s fortunes next year as it strives to recover from the worst recession in a lifetime. Thanks to Britain’s strong services sector, a rebound has already begun, with the economy growing by a record of 15% between July and September.
With people being unable to go on holiday and choosing to stay at home for most of the year, there’s a large reserve of unspent cash that could find its way into the wider economy next year as COVID vaccines get rolled out and restrictions diminish.
Economist Andy Haldane predicts that the “huge pent-up demand” could lead to a large spending spree that could revive the economy, even beyond any optimistic forecasts currently available.
With Brexit and Covid-19 causing severe disruption, we may be just a matter of months away from a much needed spending boom that will support businesses and create new momentum for the UK economy – reviving the arts, retail and aviation sectors among others.
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