According to Jes Staley, boss at Barclays, the UK is about to experience the biggest economic boom since the aftermath of World War Two.
The hopeful assessment came from Barclays, as they revealed its profits for the first three months of this year. According to the firm, the figures have doubled from the year prior to £2.4bn. Staley said that the successful vaccine rollout and built-up savings will help to drive the rebound.
He added, Barclays estimate an extra £200bn sitting in customer and company bank accounts, meaning that the UK is joining the US in seeing some of the fastest economic growth in decades. The boost in Barclays’ latest profits was driven by a more confident view on how many of its loans would be repaid.
This time last year, the bank had reserved more than £2bn to cover the risks that borrowers would be unable to repay all their debts. This time, they are setting aside just £55m for estimated debts.
Despite the virus-related disasters, it seems that the overall picture of the COVID-19 pandemic looks to be improving. Whilst it may seem optimistic to talk in terms of an economic boom after experiencing the largest economic downturn in 300 years, it is assumed that the worst is behind us.
Mark Richardson, Partner at BB&J Commercial commented on the recent news, “like many businesses emerging form the effects of the last year or so, we remain mindful of what many have been through and understandably are cautious in predicting what lies ahead. Nevertheless, we have been exceptionally busy throughout, and the news from Barclays supports our own optimism that the economy is very much on course for a significant rebound. That would certainly be good news for all of us and is extremely welcome”.
