UK economy makes stronger recovery during Covid

The UK system made a stronger betterment during Covid astatine the extremity of 2021 than antecedently estimated, according to sharply revised authoritative figures.

Data has present revealed that the system was 0.6% bigger successful the last 3 months of 2021 compared to pre-pandemic levels.

The erstwhile figures said that the UK system was 1.2% smaller.

The authorities said it showed "those determined to speech down the British system person been proved wrong".

The Office for National Statistics said changes were chiefly due to the fact that it had "richer data" from its yearly survey.

The revised figures besides amusement the pandemic lockdown illness successful the system was smaller than thought successful 2020, with output declining by 10.4% alternatively than 11%.

The betterment successful 2021 was besides faster with maturation of 8.7% alternatively than 7.6%.

Recently, the ONS estimated that betwixt April and June this year, the UK system was inactive 0.2% smaller than the last 3 months of 2019 - the past afloat 4th earlier Covid struck the pursuing March.

This meant the UK was astatine the bottommost of the biggest G7 economies successful presumption of its betterment from the pandemic.

However, the upward revision could present mean that the UK system is performing overmuch amended than Germany and is lone conscionable down France and Italy erstwhile the ONS releases its latest figures.

Chancellor Jeremy Hunt said: "The information that the UK recovered from the pandemic overmuch faster than thought shows that erstwhile again those determined to speech down the British system person been proved wrong. "There are galore battles inactive to win, astir of each against ostentation truthful we tin easiness outgo of surviving pressures of families."

While the quality betwixt however overmuch the UK system shrank and grew astatine the extremity of 2021 is huge, it needs to beryllium viewed successful the discourse of monolithic pandemic swings.

The ONS said a cardinal crushed for the alteration was that companies had piled up unsold stocks successful the pandemic alternatively than tally them down.

It besides accrued its calculation for output by wellness services, notably the NHS.

The nett effect of each this is that by 2022, the UK was not the outlier wrong the G7 successful presumption of the harm done by the pandemic. In fact, the UK system was deed beauteous overmuch successful enactment with the different large European nations.

So far, lone the UK and the US person made immoderate changes to their 2021 economical data. The likes of Germany, France and Italy person yet to. It could beryllium worse than initially thought - oregon better.

Nonetheless, the revision by the ONS gives an important penetration into the lasting interaction of the pandemic connected the UK economy.

The deed was little than primitively feared. But it does not archer america overmuch astir the system right, deed by an vigor daze and rising involvement rates, which occurred astir wholly aft this revision.