Economic forecast for London and the UK 2021

PwC has released economic forecasts for 2021 for London and the UK. You can read the full report here but to summarize these are the eight main points.

There may be fewer babies born in 2021 than in any year since births are counted. The health, social and economic effects of the pandemic mean that many will prefer not to have children until the situation is resolved.

London’s population is expected to decline for the first time in at least 40 years. Many flee London to live in less crowded places, others flee for lack of work. Obviously fewer people come to work in London because of COVID and Brexit.

Net migration with the EU is expected to become negative in 2021. The number of EU citizens leaving the UK may be greater than those coming to live there. Here, too, Brexit and COVID play an important role in this trend reversal.

The UK unemployment rate could record the largest quarterly increase ever recorded in the second quarter. Even with the resumption, the end of the government aid program means that many will be laid off.

Over 10 million people could become poor from not having enough to eat. Caused by the increase in food products and the increase in unemployment and underemployment.

The gender and ethnicity pay gap is expected to widen in 2021, potentially reversing a decade of progress. The effects of the pandemic on the world of work will be particularly felt by women and ethnic minorities who tend more of10ten to work in the most affected sectors.

One in eight newly registered cars in Britain is likely to be electric or hybrid by the end of 2021.

By the end of 2021, most of the electricity generated in the UK is expected to come from renewable sources.

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