The UK is predicted to record faster economic growth than the United States this year as the country progresses with an extensive vaccination program, Goldman Sachs said.
It predicts the UK’s Gross Domestic Product (GDP) will jump drastically by 7.8% this year, exceeding its expectations for the US by 6.8%.
A Reuters survey published in early April earlier showed that the average growth forecast in the UK was 5.0%, while the International Monetary Fund (IMF) projected growth of 5.3%.
But since the prediction was made, there have been signs of an increase in recovery in the UK, with support from a vaccination program by the government that has seen more than half of its population receive their first dose.
This was also supported by encouraging economic data readings, which showed an increase in manufacturing and business activity in the UK in April, as well as soaring retail sales.
The UK economy has contracted by almost 10% in the past year due to continued coronavirus closures to curb the spread of the epidemic.
Meanwhile, Bank of England (BOE) Deputy Governor Ben Broadbent said his expectation was that the UK would experience very rapid growth in the next few quarters as the country lifts its sanctions again.
If this expectation happens, the pound will continue to gain support to rise higher and the BOE will also tighten their monetary policy sooner than expected.
