According to the latest news, Goldman Sachs says that the United Kingdom looks set to see faster economic growth than the United States this year. They announced on Monday that the country races ahead with its vaccination program after its decline in 2020, as the coronavirus pandemic hit the world.
The bank announced in a note to clients that it now anticipates the United Kingdom’s gross domestic product to increase by a striking 7.8% in 2021. Goldman Sachs says it’s above their expectations for the U.S.
Previously, Goldman had anticipated Britain’s economy would increase by 7.1% in 2021. Its forecast for U.S. growth in 2021 stands at 7.2%, helped by U.S. President Joe Biden’s huge fiscal stimulus program.
Moreover, a Reuters poll of analysts showed an average forecast for growth of 5.0% in Britain, the world’s fifth-biggest economy, in 2021. The International Monetary Fund has forecast a 5.3% expansion.
However, since those forecasts, there have been signs of an acceleration in the pace of rebound. Remarkably the country has given the first COVID-19 vaccine to more than half of its total population.
Britain’s economy is recovering sharply from the coronavirus crisis
According to Goldman Sachs, Britain’s economy is recovering sharply from the coronavirus crisis. Moreover, the bank also added that the April flash PMI was much more robust than anticipated in Britain. The services PMI were moving strongly further into expansionary territory.
Goldman Sachs noted a much-stronger-than-anticipated 5.4% monthly increase in retail sales in March.
The United Kingdom’s economy dipped by nearly 10% in 2020. It was hit by longer coronavirus lockdowns than many of its peers. According to the IMF, the U.S. economy declined by an estimated 3.5%.
On Saturday, Bank of England Deputy Governor Ben Broadbent was quoted as saying he anticipated very rapid growth over the next couple of quarters as the country raises its COVID-19 restrictions.
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