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Spring 2021 27 is likely to be held back by the impact of ongoing distancing restrictions even with a level of immunity. This will be felt especially in the services sector which is the dominant sector of the economy. OTHER ECONOMIC INDICATORS: • Inflation: CPI averaged 1.0% over 2020 to November. It is expected to remain low in the near term, picking up as worldwide demand increases as economies recover from the pandemic. • Interest rates: The Bank of England is expected to maintain ultra-loose rates into the medium term. • Exchange rates: Sterling has strengthened against the dollar to levels not seen since 2018. However against the Euro it has remained relatively weak compared to historical standards. Ongoing currency weakness is expected to continue over 2021 until economic uncertainty clears. • Trade: Imports and exports strengthened in November, both over £50bn for the first time since February. • Unemployment: Unemployment has already picked up to 4.9%betweenAugust andOctober.Itisanticipatedtodeteriorate further, especially in the retail and service industries, as government support measures are withdrawn. <<