The Bank of England, the central bank of the United Kingdom, issued an announcement on the 6th that with the removal of the new crown epidemic restrictions, the UK economy will achieve the fastest growth in more than 70 years in 2021.
The Bank of England announcement stated that the government’s additional expenditure on anti-epidemic funds will help increase employment opportunities, and the economy this year is expected to expand by 7.25%.
A growth of more than 7% will be the strongest economic expansion of the British economy since the official record began in 1949. In 2020, the new crown epidemic caused the British economy to shrink by 9.9%, the largest contraction in the UK in 300 years.
The governor of the Bank of England, Andrew Bailey, told the media that the economic recovery is “strong”, but it is only a “rebound” rather than a boom. Although the surge in economic growth is “good news,” it can only bring the British economy back to the size of the economy in 2019 before the outbreak of the new crown epidemic.
British economic professionals predict that the pace of economic recovery will accelerate as the bustling commercial streets reopen, paving the way for a small-scale consumption boom. The rapid promotion of vaccines in the UK has also strongly boosted consumer confidence.
In order to promote economic growth, the Central Bank of the United Kingdom maintained interest rates at the lowest level in history of 0.1%. Bailey said, “We will see a sustained and strong recovery this year, but we should pay more attention to the huge impact of the new crown epidemic on the UK economy. Years have passed and the economy has not grown. The British economy is currently in a period of recovery.”
The British Monetary Policy Committee recently emphasized that until there is “clear evidence” that the economic recovery is sustainable, it will continue to implement a low interest rate policy and will not raise interest rates.