The UK economy is set to rebound strongly later in 2021 following the worst contraction on record.
With the economy shrinking nearly 10% in 2020, this year could see a monumental change in fortunes as Britain’s vaccination programme reaches more of the population.
Following an ambitious target set by the government to vaccinate all over 70s by 15th February, as of today, the UK was on target to hit or exceed the mark. In stark contrast, all EU countries combined have vaccinated less people than Britain, potentially delaying an economic recovery by several months or more.
As Britain still endures a hard lockdown and tighter travel restrictions with quarantine hotels, consumer spending is set to remain subdued. However economists are optimistic that pent up savings could help to kick off a strong rebound later this year as restrictions get removed.
This will all depend on the speed and the impact of the vaccination programme in combination with other new trade deals and fixing Brexit deal problems that have led to issues with GB-NI trade and exports to the EU.