• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

UK economy post-pandemic growth stronger than earlier estimated, ONS data shows

by August 7, 2024
written by August 7, 2024

The UK economy has emerged from the Covid-19 pandemic in a stronger state than previously thought, according to revised data from the Office for National Statistics (ONS).

The new estimates show that the annual volume GDP growth for 2022 is now 4.8%, up from the earlier estimate of 4.3%.

Small revisions for 2020 and 2021 reflect economic adjustments

The ONS update, released on Wednesday, also includes minor revisions of 0.1 percentage points to GDP growth estimates for 2021 and 2020, with figures for earlier years remaining unchanged.

These adjustments reflect a more accurate representation of economic activity, considering the full administrative and survey data now available to the ONS.

Stronger growth in key sectors drives GDP revision

The upgraded estimate for 2022, a year marked by high inflation and market turmoil following Liz Truss’s “mini” Budget, is partly attributed to stronger growth in the transport, professional, and business support industries.

The ONS’s fuller dataset has provided a clearer picture of these sectors’ contributions to the economy.

Moreover, the revised figures account for the changing economic structure post-pandemic. The health sector, which saw an increased share of the economy during the pandemic, remained larger in 2022 as the NHS worked to address care backlogs.

Similarly, the energy sector’s share of economic activity grew due to the surge in global oil and gas prices following Russia’s invasion of Ukraine.

Hospitality and manufacturing sectors remain impacted

Conversely, the hospitality sector, heavily affected by Covid-19 lockdowns, continues to be smaller than its pre-pandemic size.

The manufacturing sector’s share of output also declined, impacted by high energy prices.

The ONS also revised its assessment of the rail and air transport sectors during the pandemic.

The rail industry, which received government subsidies to maintain operations, was found to be a larger drag on growth in 2020 and 2021 than previously thought, as airlines largely ceased operations.

Annual revisions less dramatic than previous years

This year’s revisions by the ONS are less dramatic than those in the past two years.

Last year, the agency’s revisions led to a significant reappraisal of the UK’s economic performance during the pandemic, showing the economy to be more resilient and less of an international outlier than initially assumed.

The latest figures reinforce this revised perspective, indicating that the cumulative GDP growth from 2020 to 2022 was 2.1%, higher than the previous estimate of 1.9%.

UK recovery among G7 peers

Simon French, chief economist at the investment bank Panmure Liberum, commented that the UK’s recovery from the Covid crisis is now “increasingly looking middle of the pack among its G7 peers.”

However, he noted that this upgrade is unlikely to impact the UK fiscal outlook, which is based on more recent borrowing figures, or influence interest rate decisions by the Bank of England, which focuses on the current growth trajectory.

Challenges of economic estimation during the pandemic

The ONS has faced criticism for the scale of its reassessments, particularly last year. The agency acknowledged that recent revisions reflect the widespread challenges of economic estimation during the pandemic and recovery periods.

Craig McLaren, head of national accounts at the ONS, explained that the agency usually updates the “weight” it gives to each industry within GDP annually but had to pause this process when much of the economy was either closed or operating differently than usual.

The first update to these weights since 2019 had a notable impact due to the significant changes in economic operations resulting from both the pandemic and the effects of Russia’s invasion of Ukraine.

In September, the ONS will publish figures bringing its 2023 and 2024 GDP estimates in line with the updated and reweighted data, providing a clearer view of the ongoing economic recovery.

The post UK economy post-pandemic growth stronger than earlier estimated, ONS data shows appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Google’s antitrust ruling draws parallels to Microsoft’s 25-year-old case: Here’s how
next post
Nearly 50% of student loan borrowers anticipate future debt forgiveness: What you need to know

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Public opinion turns against Trump-backed tax and spending bill, new survey finds

    June 12, 2025
  • Stellar under pressure since Saturday drops to a new low

    August 27, 2024
  • Elon Musk slated to speak at Trump pre-inauguration rally: report

    January 17, 2025
  • Israel takes hard line against terrorists, allowing deportation of family members

    November 7, 2024
  • Biden doctor pleads the Fifth in speedy House closed-door interview

    July 9, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,903)
  • Investing (634)
  • Stock (919)

Latest Posts

  • Massie calls on Elon Musk to fund primary challenges against Republicans who backed Trump tax bill

    June 4, 2025
  • Judge tosses defamation suit against Fox News by head of dismantled disinformation board

    July 23, 2024
  • New polls reveal which White House term showed stronger polling numbers for Trump

    March 4, 2025

Recent Posts

  • SafeMoon and Litecoin: LItecoin recovered to $68.00 level

    July 11, 2024
  • DAVID MARCUS: Harris and Walz’s bizarre skit exposes double standard on race

    August 17, 2024
  • 26 Republican attorneys general join Virginia in petitioning Supreme Court to rule on voter roll

    October 29, 2024

Editor’s Pick

  • ‘Bold’ general who led US’ ‘Midnight Hammer’ strikes on Iran ends Middle East reign

    August 25, 2025
  • SCOOP: Bill preventing activist judges from blocking Trump’s agenda backed by White House

    March 20, 2025
  • Meta’s head of AI research announces departure

    April 2, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock