Goldman Sachs has upgraded U.K’s growth to 7.8% in 2021, up from 6.8% it set in February, according to CNBC. With the upgraded forecast, Goldman expects faster recovery in the U.K than U.S.
Indicators of U.K’s recovery include the composite purchasing managers’ index which surged to 60 in April, from 56.4 in March, the highest since November 2013.
U.K’s retail sales also surpassed expectations to hit 5.4% in March from the previous month.
British consumer sentiment in April rose to the highest since the pandemic.
Goldman points to the low Covid case growth and vaccine roll-out in which half of the U.K population are already vaccinated as key to growth prospects.
Goldman’s forecasted growth in the U.K is higher than International Monetary Fund’s forecast of 5.3%.
U.K economy contracted by 9.9% last year, more than the U.S which shrank by 3.5%.
GBPUSD is trading flat +0.07% from the Friday’s close.
