Vaccination programme set to boost economic recovery

05 Feb 2021

The UK's coronavirus (COVID-19) vaccination programme will help the UK economy rebound strongly this year, according to the Bank of England (BoE).

The economy is expected to shrink by 4.2% in the first three months of 2021 as a result of the third national lockdown. However, the BoE's policymakers expect a rebound in the spring as people become more confident about spending.

The government's COVID-19 support schemes are expected to limit any immediate increase in unemployment, although the unemployment rate is still projected to rise to 7.8% later this year as the furlough scheme winds down.

The BoE said the rebound in economic activity would depend on controlling any new strains of the virus, as well as households' willingness to spend.

It believes retired households which have received vaccines sooner will start spending their savings first.

The Bank said: 'The COVID vaccination programme would be expected to lead to an easing of social distancing restrictions, reduced economic uncertainty and higher activity, although the timing of those effects is hard to predict.'

Copyright

© 2021 Volans, Leach & Schofield. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
0113 245 7031

Quick links

Home | Contact us | Credit | Site map | Accessibility | Disclaimer | Help |


Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the FCA.

Our FCA Register number is 542783 which can be checked at www.fca.org.uk/register. The Financial Conduct Authority does not regulate taxation and trust advice, personal finance and some aspects of commercial property investment.

Volans, Leach & Schofield is a trading style of Volans Limited - Company number 07549089.

Registered in England and Wales with registered office at Volans, Leach & Schofield, 10 Blenheim Terrace, Woodhouse Lane, Leeds, West Yorkshire LS2 9HX .

Directors: Christopher Smart FCA CTA and Martin Knaggs FCCA.

Please check the information in the Disclaimer page before proceeding.