The UK economy is like a “coiled spring” prepared to release significant quantities of “pent-up financial energy”, said the chief economist of the Bank of England.
The COVID-19 pandemic had cast a severe economic crisis across the world, reversing the financial development and stability of the countries. Amid all the chaos in and around, however, the UK is all set to reflect a solid recovery of its economy.
The Bank of England’s chief economist Andy Haldane said that the UK’s economy is like a ‘coiled spring‘ and is all set to release huge amounts of accumulated economic energy. During the lockdown, the Brits had accrued a significant amount of “accidental savings“. People, therefore, are anticipated to be eager to spend a lot as the restrictions are canceled.
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Haldane also estimates that the households in the UK might have saved up to £250 billion mostly by the end of June. He also believes that following a prolonged period of social restrictions, a huge chunk of the money will be spent on events on social gatherings and outings.
The economist also mentioned how people are becoming increasingly eager to love their social lives and grab every chance that comes their way after when the restrictions are lifted.
Mr Haldane while writing for the Daily Mail said: “The recovery should be one to remember, after a year to forget.” He also pointed out that the annual growth of the country could be in the “double digits” in one year from now.
He also remarked that the speedy operation of the vaccine program would also benefit the economy because people would be able to make expenditures on their social lives as with minimum cases of infection and death, moving out would become easier.
While predicting the financial restoration of the country, Mr Halden said that in the initial 3 months of the year, the economy would decline by 4.2%. However, he said that by 222 the economy will bounce back to the pre-pandemic figures!
While the Brits are anxiously waiting for the relaxation of restrictions, Director of the Wellcome Trust and member of the Scientific Advisory Group on Emergencies, Sir Jeremy Farrar, says that it is too early to consider the lifting of existing constraints. He indicated that the instances of COVID-19 must fall below 10,000 a day to expect the release of restrictions. Transmission is still incredibly high in the UK. If transmission were still at this level and we were not in lockdown, we would be going into lockdown,” he said.
In a statement to journalists, the strategic response director of COVID-19 at Public Health England highlighted the requirement of having current measures in place until adolescents in the population are vaccinated.
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The official spokesperson of the Prime Minister said: “We want to see infection rates continue to fall across the UK, not least so that will ease the pressure on the NHS and ultimately lead to fewer people sadly dying. We will look at the data in the round and we will use that to inform the road map.”