5 Funds for a UK Economic Rebound

The UK has just posted its biggest annual economic contraction on record. We profile three funds for a recovery and two built for a prolonged slowdown

James Gard 16 February, 2021 | 9:08AM
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UK high street

The UK economy contracted by nearly 10% in 2020, the worst figure since records began after World War Two. And with Britain in lockdown since the start of the year, a recovery may be hard to envisage at this point. But as stock markets are generally forward looking, is there an argument for investors getting ahead of the curve rather than waiting for the “all clear”?

The IMF has forecast growth to rebound sharply this year, by more than 4%, and possibly 5% in 2022 if the vaccine rollout continues at its current pace. Bank of England economist Andy Haldane says the UK economy is like a coiled spring, with consumers preparing to spend big when the economy reopens fully.

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James Gard  is content editor for Morningstar.co.uk

 

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