Britain’s economy is set to grow at its fastest pace in 80 years, according to projections from forecasting group the EY Item Club.
The UK’s output will shoot up by 7.6 per cent this year – soaring past previous estimates of 6.8 per cent – in its steepest rise since 1941.
Back on the move: The economy is now set to return to its pre-pandemic peak by the end of 2021
The upgrade was driven by the rapid vaccine roll-out, and improved expectations of a bounce-back in household spending, the Item Club said.
Households are estimated to have saved around £200billion since the first lockdown last year, and are getting ready to splash that cash as restrictions ease.
The better-than-expected growth will mean the economy is now set to return to its pre-pandemic peak by the end of 2021 – two quarters sooner than expected in April and almost three years earlier than the Item Club predicted last summer.
EY is now expecting growth of 6.5 per cent next year, up from 5 per cent, followed by 2.1 per cent in 2023 and 1.6 per cent in 2024.
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