Free Trial

MNI BRIEF: UK Growth Lower Than Previous Assumption - NIESR

LONDON (MNI)

UK growth in 2021 will be lower than previously forecast and the economy won't reach its pre-pandemic levels until the end of 2023, the National Institute for Economic and Social Research said Monday. NIESR forecast GDP will grow 3.4% this year, down from a previous estimate of 5.9% and it projected that unemployment would reach 7.5% by December.

NIESR's forecasts are markedly more pessimistic than those of the Bank of England, who on Thursday published assumptions of 5.0% growth in 2021 and 7.25% in 2022. NIESR warned that as fiscal multipliers can be large when output is below potential, any fiscal consolidation risked retarding the already slow recovery.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True
MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.