The UK’s economic recovery is in full swing according to Bank of England economist Andy Haldane.
Following Britain’s lifting of the lockdown, economic activity has been expanding at record pace unseen in modern times despite rising unemployment set to exceed 7.5% at the end of the year.
Despite quarantine measures and restricted travel, the UK’s service sector is in full recovery as the Bank of England cuts its interest rates to record lows and a cash boost of £300 billion in quantitive easing measures boosts growth.
Economic activity since May has been rebounding sharply, with Haldane anticipating growth to be around 1% a week, bringing economic activity back to where it was before the lockdown occurred.
Although the UK is expected to endure one of the sharpest contractions in GDP since records began, prior to the shutdown, the fundamentals of the economy were strong. Having among the lowest unemployment levels of G7 nations, the UK’s flexible workforce and expanding digital economy are set to deliver a rise in employment early into next year.
However, uncertainty remains over whether a free trade agreement will be reached with the European Union. Recent talks have been progressing between negotiators and a deal could be signed as early as September or October according to recent developments.