Britain roars back!
Economy now bigger than it was before pandemic struck – and we’ve recovered faster than Germany
THE British economy left Covid behind at the end of last year as a surge of confidence pushed GDP back above its pre-pandemic levels for the first time.
Rishi Sunak yesterday praised the ‘grit and determination of the British people’ after figures showed that the economy had roared back from the coronavirus crisis.
the Office for National Statistics (ONS) reported that the UK’s gross domestic product (GDP), the value of goods and services produced in a year, rose by 0.9 per cent in November.
that means the economy is 0.7 per cent above the level it was in February 2020, the month before the pandemic struck.
the pace of growth was higher than the 0.2 per cent rise recorded in October and better than the 0.4 per cent increase predicted by economists.
‘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’, the Chancellor said yesterday.
‘the Government is continuing to support the economy, including through grants, loans and tax reliefs for businesses, and our Plan for Jobs is ensuring people up and down the country have fantastic opportunities.
‘We all have a vital part to play to protect lives and jobs, and I urge everyone to do theirs by getting boosted as soon as you can.’
Following predictions that Britain will be the first European country to emerge from the Omicron wave, the latest figures will raise hopes that the UK economy is set for another surge in 2022.
the data put the UK ahead of Germany, Europe’s largest economy, which saw its GDP still well below pre-pandemic levels after shrinking by as much as 1 per cent in the final three months of last year.
Like other countries, Germany has been hit by supply chain bottlenecks and shortages and has imposed fresh pandemic restrictions to try to contain the spread of Omicron.
the ONS data showed that UK growth had been boosted in November by an unexpectedly strong performance in the retail sector as shoppers splashed out in the run-up to Christmas.
Construction output was also 1.3 per cent higher than pre-pandemic levels.
Additionally, growth was supported by increased use of health and social care services. Architects, couriers and accountants also saw strong performances.
Looking ahead for this year, Rupert thompson, chief investment officer at wealth management firm Kingswood, said there were ‘significant, sizeable positives’ for the UK economy.
He highlighted people spending excess savings built up over the pandemic as well as businesses reopening and a strong performance for the UK stock market, which has regained all its losses suffered during the pandemic.
Jonathan Gillham, chief economist at accountancy firm PwC UK, said: ‘While we are not out of the woods yet, [the] data should give some optimism to the general public, businesses and policymakers that some of the fundamental barriers that were constraining economic growth are starting to ease off.’
However, the GDP figures covered the period before the emergence of the Omicron variant and the imposition of ‘Plan B’ lockdown restrictions by the Government, meaning the economic picture could have worsened since then.
Suren thiru, head of economics at the British Chambers of Commerce, warned that the stronger pace of growth was unlikely to be sustained amid concerns over inflation and interest rate rises from the Bank of England.
He added that continued disruption to supply chains meant the UK’s growth prospects would remain ‘under pressure’ in 2022.
‘Ensure fantastic opportunities’
IF a week is a long time in politics, the last seven days must have seemed an eternity to Boris Johnson. And an excruciatingly painful one.
Assailed on all sides over the growing list of rule-breaking Downing Street drinks parties, he gave every impression of a man falling into one of Dante’s circles of hell.
To a large extent, he is the architect of his own misfortune. It’s now abundantly clear that he and his staff openly and consistently flouted the strict lockdown rules they themselves decreed.
Understandably, the country is furious. Labour is in full sanctimonious cry and even among his own backbenchers there are calls for his resignation.
But today this newspaper asks, is it really in this country’s interests – or indeed those of the Tory party – for him to go?
We do not seek to minimise the hurt caused by the ‘Partygate’ revelations. These functions shouldn’t have happened and Mr Johnson bears ultimate responsibility.
However, his apology on Wednesday was sincere and showed genuine contrition. So it’s now for Cabinet Office mandarin Sue Gray to determine whether laws were broken as well as rules.
If early reports are accurate, her inquiry will censure those who allowed the parties to go ahead but fall short of recommending any police involvement.
The big question then is whether the PM can rise from the ashes. His Cabinet has rallied behind him in recent days, with the notable exception of Chancellor Rishi Sunak, whose ‘support’ has been suspiciously lukewarm.