The economy is expected to rebound by 7.25 percent in 2021, the BoE said in a statement as it upgraded its prior guidance of a 5.0-percent expansion.
The UK economy tanked by 9.8 percent last year, Britain’s biggest slump in three centuries — and the worst G7 performance — on the back of Covid-19 lockdowns.
Activity is now expected to rebound this year after England’s latest Covid-19 lockdown, which was implemented in early January, was partially eased last month following a rapid vaccination drive.
From mid-April, pubs were allowed to serve drinks outside — and non-essential retailers and hairdressers reopened too.
“In the UK, GDP is higher than in the February projection,” the BoE said in its May monetary policy report on Thursday.
“Activity has been stronger over the recent past than was expected and the slightly earlier easing of restrictions also contributes to higher GDP in the very near term.
“In 2021, annual average GDP growth is projected to be around 7.25 percent, compared with around 5.0 in the (previous) February report,” it added.