U.K. may surpass the U.S. with economic growth this year
The U.K. may show faster economic growth than the U.S. this year. Goldman Sachs announced on Sunday that Britain races ahead with its vaccination program. The bank expects British gross domestic product to soar by a striking 7.8% during 2021. This is above its expectations for the United States.
Before that, Goldman had stated that the U.K. economy would likely increase by 7.1% this year, while its forecast for U.S. growth in 2021 stood at 7.2%, thanks to U.S. President Joe Biden’s enormous fiscal stimulus program.
According to the survey published on April 13, an average forecast for the U.K. economic growth was 5.0% for this year. Meanwhile, the International Monetary Fund has been expecting a 5.3% expansion.
However, these forecasts are relatively older. Since then, the coronavirus vaccine rollouts have accelerated in the country, aiding with its recovery. More than half of Britain’s total population has already received the vaccine. Goldman Sachs noted that the U.K. economy is recovering sharply from the coronavirus crisis. He adds that the April flash PMI was significantly stronger in the U.K. than analysts expected. Furthermore, retail sales jumped by a much-stronger-than-expected 5.4% in March.
Britain’s economy decreased by almost 10% last year due to longer Covid-19 lockdowns. By comparison, the American economy shrank only by an estimated 3.5%.
We expect very rapid growth at least during the next couple of quarters as the country lifts its Covid-19 restrictions – noted Bank of England Deputy Governor Ben Broadbent on Saturday.
Greek economy may grow by 3.6% in 2021
Analysts expect Greece’s economy to expand by 3.6% this year. That number is less than previously estimated. However, on Monday, the finance ministry said that the rebound would likely pick up pace in 2022 and reach 6.2%.
Greece’s economy tumbled down by 8.2% last year due to various restrictions to hinder the spread of the pandemic, as well as a collapse in tourism revenues. Despite that, Finance Minister Christos Staikouras presented the latest forecast to a cabinet meeting, saying that the Greek economy will grow by 3.5% this year.
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