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UK economy finally bigger than before pandemic in November

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Boris Johnson, British Prime Minister, leaves Downing Street 10, to meet Sultan Haitham bin Tariq of Oman, London, UK, December 16, 2021.

Dylan Martinez | Reuters

Britain’s economy grew by a much stronger-than-expected 0.9% in November, finally taking it above its size just before the country went into its first COVID-19 lockdown, the Office for National Statistics said on Friday.

According to the ONS, 0.7% more people lived in world’s fifth largest economy than they did in February 2020.

Reuters polled economic experts and forecasted a 0.4% increase in monthly gross domestic products for November.

“It’s amazing to see the size of the economy back to pre-pandemic levels in November – a testament to the grit and determination of the British people,” finance minister Rishi Sunak said.

Some economies, including the United States, have recovered some of their pre-COVID sizes.

Even though November saw a significant acceleration in growth, December’s GDP likely suffered a loss due to the Omicron coronavirus strain. This virus swept Europe and many businesses reported severe staff absenteeism and customers still being wary about going out.

Health officials believe the Omicron infection wave in Britain has reached its peak. Analysts also think that the impact on the economy will be temporary, and the Bank of England can continue to raise interest rates for the year.

According to the ONS, all data revisions being considered, GDP would be compared or exceeded in quarters in October and December last year. This is provided that economic output in December does not drop by more than 0.2%.

According to the ONS, architects, merchants, couriers, and accountants enjoyed a record November. Construction recovered after several poor months. This was because it became more easy to source raw materials following problems with global supply chains.

The economy of Britain will continue to struggle in the months ahead even if coronavirus restrictions were relaxed.

Suren Thiru (head of economics, British Chambers of Commerce) stated that while the UK should recover once Plan B is lifted, rising inflation and persistent supply chains disruption could mean the UK’s economic growth prospects are still under pressure through much of 2022.

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