UK financial system rebounded from Covid a lot quicker than first thought, revised figures present
T
he UK economy bounced again from the Covid-19 pandemic way more shortly than beforehand thought, official statistics revealed right this moment, with new revised figures including 1.7% to the country’s GDP for the fourth quarter of 2021.
However, what this implies for the present dimension of the financial system and its course of travel is unclear, as revised statistics protecting newer quarters is not going to be revealed till 30 September.
Given that the brand new estimates of 2021’s GDP are increased, and that unrevised figures present that growth has been near flat since then, the statistics might imply the financial system right this moment is greater than beforehand thought, throwing doubt on the narrative of sluggish UK progress.
However, it is also that present estimates of GDP this yr is correct and the financial system declined, presumably coming into a recession, this yr.
The revisions handled estimates of enterprise expenditures in 2020 and 2021, throughout the Covid-19 pandemic.
The ONS stated that latest surveys counsel that manufacturing enterprise’ prices in 2020 and 2021 had been increased than previous estimates. In addition, manufacturing and mining firms additionally held extra inventory than first thought.
Both of those led to what the ONS known as a “brighter picture” for GDP.
The ONS estimate of GDP for the fourth quarter of 2021 is now 1.7% increased than it was earlier than the revision. That would imply the financial system was again forward of pre-pandemic ranges earlier than 2021 was over, a stark distinction from the previous knowledge which stated the UK had nonetheless not returned to pre-pandemic GDP within the second quarter of this yr.
The new knowledge brings the UK nearer to its international friends when it comes to its restoration from the pandemic, reaching pre-pandemic ranges quicker than France and Italy. However, the ONS famous that different international locations could revise their very own knowledge in addition to improved info is available in.
“Producing estimates of GDP in unprecedented times, when much of these data we need to produce complete national accounts are not available for a couple of years after the event is clearly a challenge,” the ONS stated. “We are among the first of our international colleagues to update our initial estimates with more detailed data.”
Chancellor Jeremy Hunt hailed the revised figures.
“The fact that the UK recovered from the pandemic much faster than thought shows that once again those determined to talk down the British economy have been proved wrong,” he stated.