According to the latest figures from the Confederation of British Industry (CBI), the UK economy is set to bounce back to its pre-COVID level towards the end of 2021, despite the lifting of all lockdown restrictions being delayed by a month.
The easing of some COVID-19 restrictions, rapid roll-out of vaccines, and the unleashing of pent-up demand means the economy is poised for growth over the summer, the latest Confederation of British Industry (CBI) Economic Forecast has shown.
However, those sectors still working under restrictions will inevitably not feel the recovery as strongly.
The Confederation of British Industry (CBI) is forecasting GDP growth of 8.2% this year, and 6.1% in 2022 following a historically large fall of 9.9% in output over 2020.
Business investment nonetheless remains 5% below its pre-Covid level at the end of 2022, reflecting both the scale of the decline seen over the crisis and lingering uncertainty.
CBI Director-General, Tony Danker, said: ‘The imperative now must be to seize the moment to channel this investment into the big drivers of long-term UK prosperity. That’s why it’s the right time for Government to come forward with far more detailed plans on everything from decarbonisation to innovation to leveling up.
‘Clearly, this does not apply to the hardest-hit sectors from the pandemic who even now face continued delays and genuine challenges to stay viable. Extending the commercial rent moratorium will help keep some firms’ heads above water, but the Government must also do the same on business rates relief.’