Britain’s economy will rebound to pre-COVID levels by the end of 2021 despite the delay in ending the lockdown, the CBI predicted – a year ahead of schedule.
However, the business group has warned of devastating some still-closed sectors if they don’t receive more support.
The CBI raised its growth forecast for this year to 8.2%, helped by increased spending fueled by improving household incomes and accumulated savings during confinements.
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This will mean that GDP will rebound to its pre-pandemic level by the end of 2021.
The latest report said: “Despite the delay in lifting all lockdown restrictions for another month, the UK economy is still poised for a watershed year.”
He said the economy was poised for “considerable economic growth over the summer” but that “it will not be felt so strongly by sectors still working under restrictions”.
Britain suffered its biggest annual economic decline for 300 years in 2020, declining almost 10% thanks to the pandemic. It took a hit again at the start of this year as further blockages have taken their toll.
The easing of restrictions since spring has fueled hopes for a strong rebound, but it was feared that the postponement of the planned end of the measures on June 21 could hinder recovery.
Confirmation of the four-week delay means some businesses such as pubs and restaurants must continue to operate at limited capacity, while others, such as nightclubs, must remain closed.
Sectors such as the hotel industry are still hampered by restrictions
The government offered some relief by extend a moratorium on commercial landlords evicting troubled tenants in the new year.
But the treasure resisted go further …
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Source: news.sky.com
This notice was published: 2021-06-17 19:49:00
