Britain’s economic plunge will be less severe than feared this year as the global bounce-back from the pandemic gets firmly under way, but the world faces an uncertain 2021, according to a major international organisation.
The Bank of England is expected to leave interest rates on hold at the historic low of 0.1% on Thursday as the economy accelerates out of the record recession caused by the Covid-19 lockdown.
There were further signs of a post-lockdown mini-boom in the UK economy after figures showed the fastest service sector growth since 2015, but firms ramped up “fierce” job cuts in the face of the pandemic.
The Chancellor’s latest £30 billion package of emergency measures has raised fears over a mammoth looming bill for taxpayers as experts also warned it may not be enough to boost the battered economy.
Britain’s economy is on track for a sharp V-shaped recovery thanks to a faster-than-expected rebound but “considerable” risks remain, according to the Bank of England’s chief economist.