U.K. Economy Rebounds But Faces Twin Headwinds

The video discusses the UK's economic recovery, highlighting a 5.5% GDP growth in the second quarter, surpassing expectations. However, challenges such as material shortages and rising COVID cases are causing concerns, leading the Bank of England to downgrade its third-quarter forecast. The potential for three rate hikes in 2022 adds complexity to managing inflation without hindering recovery. Additionally, the end of the UK furlough scheme and the £20 Universal Credit uplift could pressure household finances, potentially reversing economic gains.

What was the actual GDP growth in the second quarter compared to the expected growth?

• 4.8% compared to 5.5%

• 5.5% compared to 4.8%

• 6.0% compared to 5.0%

• 4.5% compared to 5.0%

What are the main challenges affecting the economic recovery according to the first section?

• Material shortages and rising COVID cases

• High inflation and low consumer confidence

• Increased government spending and low interest rates

• Trade deficits and high unemployment

What is the Bank of England's forecast for the third quarter?

• 4.0%

• 3.0%

• 2.1%

• 1.5%

How many rate hikes are traders expecting in 2022?

• Four

• Three

• Two

• One

Which group is likely to be most affected by the end of the furlough scheme?

• High-income earners

• Young professionals

• Older workers on lower incomes

• Middle-income families