The Bank of England has forecast that the UK economy will grow by 7.25% this year after the Bank revised its growth estimates following the vaccine rollout.
The Chancellor, Rishi Sunak continued increase of public spending helped to the economy to stay afloat, which also minimised the impact of the pandemic.
The Bank said, “New Covid cases in the United Kingdom have continued to fall, the vaccination program is proceeding apace, and restrictions on economic activity are easing.
The Bank warned that if a new variant forced another lockdown then the growth risks being missed.
The Bank added, “GDP is expected to rise sharply in 2021 second quarter, although activity in that quarter is likely to remain on average around 5 percent below its level in the fourth quarter of 2019.
“GDP is expected to recover strongly to pre-Covid levels over the remainder of this year in the absence of most restrictions on domestic economic activity.”