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UK is set for its fastest period of economic growth since the Second World War- so beat the rush and invest in Bounce back Britain

Do you have what it takes to live in the Roaring Twenties? The Bank of England predicts that the UK will experience its fastest economic growth since World War II, as British consumers, armed with well-stocked bank accounts, rise like phoenixes from the ashes of lockdown.

The Bank of England governor, Andrew Bailey, expects the UK economy to grow 7.25 percent this year.
This is a significant increase from the Bank’s February forecast of 5%, while unemployment is expected to fall sharply.

How should investors react to this abrupt turn for the better in the economy’s fortunes as we approach phase three of the roadmap out of lockdown?

‘There are a lot of reasons to be optimistic about the prospects for UK stocks,’ says Jason Hollands, a director at wealth manager Tilney.
According to him, the UK stock market has gone from being an “ugly duckling” in 2020 to being one of the world’s top performers this year, with gains of nearly 13%.

Hollands points out that the economy and stock market of the United Kingdom are not inextricably tied. Only a few businesses are likely to benefit from renewed economic strength, especially those in the FTSE100 Index.
It’s important to put the Bank’s upbeat economic forecast into context before getting too excited.

Whereas the stock market in the United Kingdom has ‘bounced back,’ even the Bank of England’s bullish forecast would not bring the UK economy back to where it was pre-coronavirus in March of last year.

It will, in fact, return the UK economy to where it was in 2019. The economy shrank by 1.5 percent in the first three months of the year, according to official figures released last week, but grew by 2.1 percent in March as lockdown restrictions were relaxed.


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