UK economy to return to pre-Covid levels by end of 2021, CBI predicts
The UK economy is expected to return to pre-Covid levels by the end of 2021, a year ahead of schedule, the CBI predicted.
The business group said the economy is expected to grow 8.2% this year and 6.1% in 2022, while peak unemployment will be lower than previously expected, PA News reports. .
But business investment will remain 5% below the levels seen before the pandemic.
The economy is poised for “considerable” growth over the next few months despite the delay in ending the lockdown, the CBI said.
Its report highlighted the rapid deployment of vaccines and the “rampage” of pent-up demand, although the CBI warned that stagnant productivity and business investment remained a problem.
The extension of the job maintenance program until the fall and expectations of a stronger economic recovery will lead to a drop in the unemployment peak, it has been predicted.
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CBI Managing Director Tony Danker said: âThere are some really positive signs for the economic recovery to come this year and next. The data clearly indicates that there is pent-up demand and ambition in many sectors.
âThe imperative now must be to seize the opportunity to channel this investment into the great engines of the UK‘s long-term prosperity.
“This is why now is the right time for the government to come up with much more detailed plans on everything from decarbonization to innovation to upgrading.
âThis clearly does not apply to the sectors hardest hit by the pandemic which, even now, face continued delays and real challenges to remain viable.
“It would be devastating for the hospitality industry, events or aviation businesses to fail on what we hope will be the last leg of the restrictions.”