Experts from Deloitte report that Britain is set for a “sharp snap back” as spending increases amongst consumers. High levels of saving, the successful vaccination rollout and easing of lockdown has set the stage for a surge in spending in the coming months.
According to Deloitte, the UK economy is set to grow at its fastest rate on record this year, with the assistance of consumer spending rise. The UK’s GDP, which measures the activity of companies, governments, and individuals within an economy, had shrank by 9.9% last year because of COVID restrictions. Now, it is expected to be on track for a faster economic rebound than what was previously thought.
Mark Richardson, Partner at BB&J Commercial commented “in light of the recent news of consumer confidence increasing, it is extremely encouraging that businesses have not retreated on their plans to move. It will be interesting to see if this confidence is sustainable or simply a reaction to the ease of COVID restrictions, time will provide a better indication of this. From my point of view I remain confident that the economy will rebound, and this in no small part helped inform our own business decision to relocate to larger premises at the beginning of this year.”
EY also reported that the UK economy has “proven to be more resilient than seemed possible.” They predicted that the economy would return to its pre-pandemic size by the second quarter of 2022, which is three months earlier than previously forecasted.
EY’s chief economic adviser added that the recent forecast has suggested that the long-term scarring is less than envisaged and looks set for a strong recovery for the rest of this year and beyond. Whilst the restrictions have caused disruption, the last 12 months have helped minimise the economic impact.