United Kingdom key themes 2022: A tougher phase for the recovery
After enduring one of the deepest downturns in 2020, the UK has enjoyed one of the strongest rebounds in 2021. The ‘easy’ gains from reopening are behind us, and unprecedented policy support is being withdrawn, so the recovery is now entering a tougher phase. But provided the Omicron Covid variant doesn’t result in renewed restrictions, we’re sticking to our upbeat view of the UK’s prospects for 2022 based on four key themes shaping the outlook.
What you will learn:
- A lack of spending opportunities has resulted in UK households accumulating excess savings worth 10% of income during the pandemic.
- Another large rise in the energy price cap and the restoration of the VAT rate for the hospitality sector to 20% are likely to push CPI inflation above 5% in April 2022.
- Market pricing implies that Bank Rate will be 1% at the end of 2022. This looks far too aggressive.
Tags:
Related Services
Post
After the presidential debate, the US election remains a toss-up
Though Vice President Kamala Harris' chances of winning the election have improved since her debate with former President Donald Trump, we aren't changing our subjective odds for the outcome of the 2024 presidential contest.
Find Out More
Post
Introducing our US immigration tracker
We created a real-time tracker of unauthorized migrants to the US, the driving force behind the nation's post-pandemic immigration surge. New undocumented migrants in the US will total 2.3mn this year, nearly 1mn lower than in 2023.
Find Out More