According to economists, Britain’s economic growth will be faster than any other G7 nation in 2022 because it is rushing back after Covid.

  • Goldman Sachs analysts predict that the UK will experience a 4.8% growth over the coming year 
  • This beats 3.5% predicted for the US, 4.4% for France and 4% for Germany 
  • HSBC forecasts a 4.7% increase in 2022. This is more than double the 2.2% Japan has.










Experts predict that the UK’s economy will outpace other G7 countries for the second consecutive year, in 2022. 

Goldman Sachs forecasts that Britain’s growth will be 4.8% in the coming year. That is substantially higher than what was predicted for 3.5% in the United States, 4.4% France and Italy, and 4.4% Germany. 

HSBC predicts a similar increase of 4.7% in 2022, again overtaking the 4.3% it predicts for Italy and more than doubling the 2.2% forecast for Japan, The Telegraph reports. 

The impressive forecasts, which project an increase in output of almost 7% by 2021 could be due to Britain’s rapid vaccine booster program.

The figure comes after the deep coronavirus depression that caused GDP to plummet by close to 10% in 2020. 

But others predict that the news might not be quite so good, with growth hampered by ‘a squeeze on living standards from higher inflation, broadening supply-chain disruption and the likelihood of an earlier-than-expected rise in interest rates’. 

HSBC predicts a similar increase of 4.7% in 2022, again overtaking the 4.3% it predicts for Italy and more than doubling the 2.2% forecast for Japan

HSBC expects a similar rise of 4.7% for 2022. It will again surpass the 4.3% forecasted for Italy and double the 2.2% prediction for Japan.

Pictured: Shoppers take to Oxford Street for the Boxing Day sales. Britain's relatively swift vaccine booster programme could be one reason for the impressive predictions, which build on an output expansion of nearly 7% in 2021

Pictured: Boxing Day Sales at Oxford Street. The impressive forecasts, which are based on an expected output increase of almost 7% by 2021, could also be due to Britain’s rapid vaccine booster program.

Hywel Ball and Peter Arnold, who published a report for EY Item Club last week, stated that growth is still strong, but rising inflation, supply restrictions and the possibility of higher interest rates are slowing down the recovery.

They say that a combination of strong financial reserves and business investment will be able to overcome the limitations on growth.

The UK’s GDP is expected to grow 6.9%, down from 7.6% in summer. 

In a publication entitled ‘Why the recovery remains strong – but is being slowed by headwinds’, the authors say the economy has ‘clawed back more of the losses triggered by Covid’ since its previous July forecast.

However, the authors add, “The momentum of recovery has now slowed. As the potential for catch up growth has narrowed, and as supply and demand have failed to keep pace, bottlenecks, shortages, and supply have been seen increase.   

In a publication for the EY Item Club last month, authors Hywel Ball, Peter Arnold and Martin Beck write that while growth remains buoyant, 'rising inflation, supply constraints and the prospect of higher interest rates' are slowing the recovery. But, they say, 'strong financial reserves' built up by households during lockdowns and a 'revival in business investment' will help to offset the constraints on growth. Pictured above: EY Item Club tracking Britain's GDP, and its predictions of contribution to GDP growth in the coming years

Hywel, Peter Arnold, and Martin Beck wrote last month that although growth continues to be buoyant, rising inflation and supply constraints, as well as the possibility of higher interest rate, are slowing recovery. They say that’strong financial resources’, which were built up by families during lockdowns, and a “revival of business investment” will be able to overcome the limitations on growth. Above: EY Item Club monitoring Britain’s GDP and their predictions for its contribution to future GDP growth

“The official unemployment rate has been lowered by half of the level it was before COVID-19, while job openings and employment have reached record levels. 

“Despite this, the employment rate is significantly lower than it was in early 2020. Although it is too early to evaluate the impact of September’s furlough program’s end, initial indications indicate that there was a minimal effect on unemployment.

‘The buoyant jobs market – which is emerging remarkably unscathed from the crisis – will support what has been strong momentum in consumer spending. But there are many barriers to growth. 

Pantheon Macroeconomics has also reduced its UK forecast by 4.2% because of the Omicron Covid strain. 

Pantheon’s Claus Vistesen said one factor for Britain’s faster growth is that the 2020 recession was so deep, meaning there is now more ground to recover. 

He explained that the booster programmes can take time for them to be implemented. Like early in the pandemic, the UK is moving very quickly, while still observing restrictions.

“I don’t believe that it will be much different in Europe. Even as Europe boosts boosters, and they are, it’s not going to stop restrictions being imposed in near-term.

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