UK: In two years the economy has returned to its pre-COVID-19 level

According to a recent Reuters poll of 70 economists, the UK economy will return to the corona virus epidemic within two years.

Key results

“GDP will shrink by 3.0% this quarter, more than double the 1.4% decline forecast last month. On the contrary, the fourth-quarter average of 0.0% has been revised upwards after a contraction of 0.4%. Previously expected.”

“The growth forecast for 2021 has been raised from 4.9% to 4.7% and the 2022 average from 5.3% to 5.5%.”

“When asked how long it will take for the economy to reach pre – COVID-19 levels, 18 said in two years. One said in a year, nine said it’s more than two years. 14 out of 23 last month said it’s two years.”

“Survey averages suggest that a radical easing of monetary policy by 2024 will quickly ease.”

“There were rumors that the bank would take credit costs into negative territory – the markets set the price for it – but 30 of the 34 economists who answered an additional question said it was not possible or very low. Only four said it was possible.”