The UK is recovering far quicker from the epidemic-driven crisis than previously thought. The sharp rebound came as a surprise to economists. Macroeconomic reports also show signs of robust growth in key indicators. This is why analysts are now betting on a faster revival of the economy.
PMI indexes and retail sales are the best indicators of the state of the economy. Currently, in the UK, these indicators are climbing. According to the fresh data, retail sales hit a nine-month high amid pent-up demand. Purchasing Managers’ Index grew at a record pace in the last seven years. For this reason, the Bank of England had to revise its earlier forecasts. The regulator now expects "a sharp recovery from the worst recession in three centuries." However, it is still too early to expect a full recovery in economic indicators in the short term. Yet, such strong indicators give hope for a brighter future. Besides, the data also revealed export growth, low inflation, and high business expectations for the next year, which are likely to approach record highs. In addition, the labor market is also on the path to recovery. New jobs are being created at the fastest pace since 2017.
Recently, the Bank of England reported that at the end of 2020, the country's GDP fell by 9.9%. Importantly, this fall was deeper than economists had expected. The country is still facing the worst migration of people since the Second World War. Approximately, 700,000 people left the UK within last year.
