UK overtakes France and Germany as economic growth bigger than expected after COVID

The UK is not lagging behind within the G7 group of rich international locations as revised figures present financial progress was greater than first thought.

The financial system grew greater than beforehand thought within the first three months of the yr, newest figures from the Office of National Statistics (ONS) present.

The knowledge exhibits UK financial progress was 0.3% from January to March, higher than the 0.1% first introduced.

It signifies that the UK financial system is now anticipated to have grown by 1.8% between the ultimate quarter of 2019, earlier than the COVID pandemic hit, and the second quarter of this yr.

That places the nation’s financial system forward of each Germany (0.2%) and France (1.7%) throughout the identical interval. But it’s nonetheless behind Italy (2.1%), Canada (3.5%), Japan (3%) and the US (6.1%).

The newest figures are a lift to Prime Minister Rishi Sunak who has set himself the objective of rising the financial system.

An ONS announcement from earlier this month already delivered excellent news when it mentioned pandemic-era financial contraction was much less extreme than thought, and progress in 2021 was significantly higher than earlier than.

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ONS: ‘Unusual elements affecting the financial system’

Following the newest figures, sterling recovered worth. One pound may purchase $1.22 after hitting a six-month low on Wednesday.

The FTSE 250 index of precious corporations on the London Stock Exchange was additionally up after the announcement.

Another impact of rising GDP may be rising greenhouse fuel emissions.

The IPCC (Intergovernmental Panel on Climate Change) mentioned that GDP and inhabitants progress “remained the strongest drivers of CO2 emissions from fossil fuel combustion in the last decade”.

In response to the GDP revision, Chancellor Jeremy Hunt mentioned: “We know that the British economy recovered faster from the pandemic than anyone previously thought and data out today once again proves the doubters wrong.

“The greatest approach to proceed this progress is to stay to our plan to halve inflation this yr, with the IMF forecasting that we’ll develop greater than Germany, France, and Italy in the long run.”