It has been a tough few months for many economies, and Great Britain has been no exception. 

The second quarter of 2020 saw a historic 20.4% plunge, making it the worst performer among the G7 nations. By the end of the year, the cumulative decline was pegged at 9.9% – a figure that was last seen in the aftermath of World War I.

While Goldman Sachs projected a 7% growth, they had to retract the report in the wake of new information regarding the coronavirus and the announcement of a third lockdown. 

Despite these indicators, thanks to the opening up of new avenues, the UK might be recovering gradually. In the Post-Pandemic Era, here are a few promising signs that could add momentum to the country’s GDP. Britain’s Economy might recover slowly.

A Massive Inoculation Drive

The UK is an early mover when it comes to vaccines and can boast of the highest inoculation rates in the world. Recent reports suggest that over 18 million people have received at least one jab of the COVID-19 vaccine. On the other hand, 670,000 people have already taken two doses. 

The prompt vaccination process can mark an end to the country’s frequent lockdown announcements and bring relief to industries and businesses.

Promising Investment Projects

post pandemic era
Photo credit: The London Resort

Early this year, as many as seven mass vaccination centres were opened to speed up the inoculation process. As the UK vaccine programme enters its second phase, the fast-paced drive proves to be a ray of hope for economic revival. 

The construction industry has always played a crucial role in boosting the nation’s employment numbers. It drives up the short-term employment rate and helps create long-term jobs. 

The National Infrastructure Commission (NIC) passed a few recommendations for the infrastructure sector in 2021. One of these includes long-term funding of £30 billion for urban transport in the country. 

Extensive construction projects in the pipeline reveal chances of a brighter financial future. These include the Crossrail, a 73-mile railway line, and Hinkley Point C, the country’s newest nuclear power station. 

Additionally, the Heathrow expansion plan is expected to triple the airport’s flight traffic. The completion of the project will allow for an extra five million passengers every year.

Besides utilitarian infrastructure projects, the nation is kickstarting large-scale leisure projects as well. A gigantic theme park, The London Resort, is scheduled to open up in 2024. The Kent-based project is backed by Middle-Eastern investors, in what is a sign of increasing foreign investments in the country.

The NIC will be tracking the government’s progress in the infrastructure space through an annual report, enabling diligent implementation in the construction sector.

Global Partnerships

In the post-Brexit world, the UK has to work hard to rope in global partners by itself. While the country continues to trade with 63 nations, deals with four new countries are underway. 

In October 2020, the UK struck its first post-Brexit deal with Japan allowing free trade. The Trans-Pacific Partnership (CPTCC), of which Japan is a member, ranks high on the country’s priority list. Such deals are expected to open up a broad range of markets across the world.

For instance, a trade agreement with Jordan is all set for fruition in March 2021. Such strong global connections and partnerships will help expand the market and draw in more internal investments.

Nissan’s Green Tech Investment

Nissan has carved out several plans which concern green technology, with the most recent one being the development of the Qashqai car. 

Its British factory will take charge of the production of cars and batteries. The plan is going to drive investment of over £1 billion. Besides, Nissan has also introduced e-Power as an alternative to electrical vehicles and this is expected to draw more future investments. 

Incidentally, Nissan’s green mobility plans also align with one of NIC’s recommendations for 2021, which stresses on the decarbonisation of vehicles. This suggests that the auto giant can emerge as a pivotal player contributing to Britain’s economic comeback.

Booming Fin-Tech Start-Up Landscape

Over the years, the UK has proven to be a flourishing ground for the fin-tech domain, housing over 1600 firms in this space. The booming industry supports several startups, attracting enormous funding from venture capitalists. 

In 2019, the UK’s fin-tech companies attracted a record £34 billion in investment, but the digits slanted to $4.1 billion the following year. Nevertheless, it was the highest amongst the EU countries. 

Three new companies, the Starling Bank, Curve and GoCardless, have raised funding close to $100 million in 2020. Considering the fin-tech industry’s stronghold dominance in the country, it is bound to play a critical role in the recovery process.

Sterling Stands Strong

The news of a successful vaccination drive has raised the hopes of many. With the programme progressing to the next stage, the markets are responding positively. Moreover, 10 Downing Street has chalked out a four-step plan to restart the economy. 

These trends have managed to push the Pound’s exchange rates upwards. 

The currency is going strong in the foreign exchange markets, further opening up avenues for global investors.

Hope is the Way

Most countries are trying to climb their way up the revival ladder. The tragic drop that the country’s economy experienced in 2020 was as unprecedented as historic. 

The UK has several silver linings and seems to be advancing towards the identified opportunities. Investment in different sectors can pull the country out of the bleak and gloomy climate. With tech-oriented services, infrastructure and green technology shining bright at the moment, the revival will hopefully follow a steady path.