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UK economy grew more quickly than thought in late 2021 -Breaking

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© Reuters. FILEPHOTO: This view of London’s Skyline is taken from St Paul’s Cathedral (London, Britain) February 25, 2017. REUTERS/Neil Hall

LONDON, (Reuters) – Britain’s economy grew faster than expected in the three-month period ending 2021, when it was struck by Omicron waves of COVID-19 patients. This growth was driven by increased health spending. Official data were released on Thursday.

According to the Office for National Statistics, gross domestic product increased 1.3% in fourth quarter compared with the prior three-month period. The figure is stronger than the initial estimate of 1.0%.

According to ONS the greatest contributors were in human health, social work, and increased medical visits. These are largely due to an increase in the number of doctors who visit at the beginning of each quarter as well as an increase coronavirus testing.

This was an increase from 0.9% economic growth in the previous quarter, but it was still well below the 5.6% expansion that occurred in April-June last year as the economy was recovering from COVID-19 lockdowns.

According to projections made by government fiscal watchdogs, investors believe that the recovery will slow down in 2022 because inflation is expected to reach almost 9%. Additionally, households are likely to experience the greatest drop in their living standards since the 1950s.

The majority of households used their savings from the lockdown to fund their purchases. According to the ONS, this saving ratio dropped from 7.5% in the third quarter to 6.8%, which is close enough for 6.0% before the pandemic.

At the close of 2021, GDP was 0.1% lower than it was at 2019; this was revised from 0.4% at its pre-pandemic peak.

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