Our view that the economy’s recovery from the COVID-19 crisis will be faster and fuller than most expect is consistent with UK equity prices continuing to rise over the next couple of years. Admittedly, UK equities have lagged their international counterparts since the pandemic. The FTSE 250 only rose back to its pre-pandemic level earlier this month and the FTSE 100 is still 9% below it. But the composition of the UK’s equity indices means that they should benefit by more than others from the economic recovery. As such, the gap between UK and international equities may narrow over the next couple of years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services