The UK economy is expected to regain its pre-pandemic size in the middle of next year, six months earlier than previously forecast, finance minister Rishi Sunak said today in his annual budget speech.
But the economy would still be 3% smaller in five years' time than it would have been without the damage wrought by the coronavirus, he said.
Rishi Sunak, announcing forecasts by the Office for Budgetary Responsibility (OBR), said the UK economy was likely to grow by 4% in 2021, slower than a forecast of 5.5% made in November.
Looking further ahead, the OBR forecast gross domestic product would grow by 7.3%, 1.7% and 1.6% in 2022, 2023 and 2024 respectively.