UK economy finally bigger than before pandemic in November

1 week ago

British Prime Minister Boris Johnson leaves Downing Street 10 to conscionable with Oman's Sultan Haitham bin Tariq, successful London, Britain December 16, 2021.

Dylan Martinez | Reuters

Britain's system grew by a overmuch stronger-than-expected 0.9% successful November, yet taking it supra its size conscionable earlier the state went into its archetypal COVID-19 lockdown, the Office for National Statistics said connected Friday.

The world's fifth-biggest system was 0.7% bigger than it was successful February 2020, the ONS said.

Economists polled by Reuters had forecast monthly gross home merchandise maturation of 0.4% for November.

"It's astonishing to spot the size of the system backmost to pre-pandemic levels successful November – a testament to the grit and determination of the British people," concern curate Rishi Sunak said.

Other economies person already recovered their pre-COVID size, main among them the United States.

Despite November's maturation acceleration, GDP astir apt took a deed successful December erstwhile the Omicron coronavirus variant swept Europe, and the nonaccomplishment of momentum is apt to person stretched into January with galore firms reporting terrible unit absences and consumers inactive wary of going out.

But wellness officials deliberation the Omicron infections question has present peaked successful Britain and analysts accidental the deed to the system is apt to beryllium short-lived, allowing the Bank of England to proceed raising involvement rates this year.

The ONS said, information revisions aside, GDP successful quarterly presumption would scope oregon surpass its pre-coronavirus level successful the October-December play of past year, arsenic agelong arsenic economical output does not autumn by much than 0.2% successful December.

The ONS said architects, retailers, couriers and accountants had a bumper period successful November and operation recovered from respective anemic months arsenic earthy materials became easier to root aft problems successful planetary proviso chains.

Britain's system volition inactive look challenges successful the months ahead, adjacent erstwhile coronavirus restrictions are relaxed.

"While the UK system should rebound erstwhile Plan B measures are lifted, surging ostentation and persistent proviso concatenation disruption whitethorn mean that the UK's economical maturation prospects stay nether unit for overmuch of 2022," Suren Thiru, caput of economics astatine the British Chambers of Commerce, said.