UK Economy to grow faster than US this year

Goldman Sachs said that Britain is set on a faster growth rate than the United States, this year. The clients can expect the British gross domestic product to grow by a “striking” 7.8% this year, said the bank. This can be above the expectations from US.

On April 13, a Reuters poll of analysts showed that an average forecast for growth of 5.0% in the UK. In 2021, it has become the world’s fifth-biggest economy. A 5.3% expansion has been projected by the International Monetary Fund.  Since those forecasts were made there have been signs of an acceleration in the pace of recovery with the country.

Goldman Sachs said that the UK economy is rebounding sharply from the Covid crisis. The April flash PMI was much stronger than expected in the UK, with the services PMI moving strongly further into expansionary territory. In March, the bank also noted a much-stronger-than-expected 5.4% monthly jump in retail sales.

A comparison forecast for U.S. economic growth this year, has not been provided. Goldman said in February that it expected U.S. GDP would grow by 6.8% in 2021 as President Joe Biden pushed ahead with a huge fiscal stimulus program. Nearly 10% of Britain’s economy has been shrank last year, due to the lockdown situation of Corona virus. By comparison, the U.S. economy shrank by an estimated 3.5%, according to the IMF.

Bank of England Deputy Governor Ben Broadbent stated that he expected very rapid growth at least over the next couple of quarters, as the country lifted its coronavirus restrictions.