The UK economy is expected to recover faster this year than that of the United States. That’s according to a forecast released Sunday by Goldman Sachs, a U.S. investment bank.
According to the bank, Britain’s gross domestic product is expected to grow by 7.8 percent this year. “This is more than our expectations for the US economy,” Goldman Sachs says. The British economy is said to be recovering faster than originally thought.
April’s development of the purchasing managers’ index was better than expected, and the index fell into a strongly growing territory, Goldman Sachs also argues. The investment bank also noted that there was a massive monthly retail sales growth of 5.4 percent in March.
If developments in the British economy so far in the rest of the year are confirmed, they are likely to outperform US GDP growth, which is expected to increase by 6.8 percent this year. Goldman Sachs predicted such economic growth for the US economy in February this year. The fiscal impulse that Biden’s support packages will deliver to the economy has already been included in the estimate.
