UK economy grows 1.3%, close to pre-pandemic level Business News

Britain’s economy grew at a rate of 1.3% towards the end of last year, with GDP now just below pre-pandemic levels, according to the official statistics body.

He said this growth was greater than initially thought.

The Office for National Statistics (ONS) had previously estimated that GDP grew by 1.0% in the final months of last year.

On Thursday, he said the figure was actually 1.3% for the fourth quarter of 2021, which runs from October to December.

Darren Morgan, director of economic statistics at the ONS, said: “GDP rose a little stronger than we thought in the fourth quarter, which means it is now just 0.1% in below its pre-pandemic level.”

Revisions to GDP figures for the past two years mean the economy grew by 7.4% in 2021. This is still a record rebound, but lower than the initial estimate of 7.5%.

The ONS said it came after revising the record drop in GDP at the height of the pandemic in 2020 to 9.3%, from the first estimate of 9.4%.

But the recent economic growth comes amid a cost of living crisis, driven in large part by soaring household bills. These are expected to increase further on Friday due to a further increase in the energy price cap.

Last week, the Office for Budget Responsibility even warned that the UK was about to see the biggest drop in living standards since the record began. The official forecaster warned that higher inflation would “erode real income and consumption” in a way that would reduce GDP growth this year.

On Thursday, the ONS said revenue rose 1.3% compared to a 1.9% rise in spending in the fourth quarter of last year.

Mr Morgan, director of economic statistics at the body, said: ‘Savings were at their lowest level since the start of the pandemic as household spending increased, mainly due to rising prices.