Economists are predicting that the UK's GDP – Gross Domestic Product – will hit between 4.6% and 5% in 2022. The International Monetary Fund (IMF), Goldman Sachs, S&P Global, and HSBC are all forecasting very similar estimates for the United Kingdom next year; figures which would see Britain outperform the other G7 nations.
The Times reported yesterday how the UK would be catching up and surpassing international rivals, albeit at a slower pace than the 6.9% gained (or rather recovered) this year. The expectation is that this will return the UK to pre-pandemic positioning. In comparison, the US is predicted to gain 3.5%, Germany 4%, Italy 4.3%, France 4.4%, and Japan just 2.2%.
The UK did fall harder than other major nations, with Covid and supply chain issues hitting it harder due to the added trade changes with the EU following Brexit. The bounceback is good news though, and the FTSE 100 has rallied ahead of the new year. The market is up 5.3% for December, and 1.1% today – the highest for 22 months.
As has been the case throughout the pandemic, any changes to the virus such as new variants could cause further setbacks, and so could the rapidly rising inflation being experienced. Positive forecasts are one thing, but positive results are another.
