The economy has grown slightly faster than expected, painfully back to pre-pandemic levels, but Britons are saving less as the cost of living crisis takes its toll
The United Kingdom economy up 1.3% in the last three months of 2021, the latest figures show.
those of the United Kingdom gross domestic product (GDP) is now at 0.1% where it was at the start the Covid pandemicthe Office for National Statistics (ONS) said today.
GDP is the value of all UK goods and services when aggregated and expressed in pounds.
The forecast for Q4 was 1%, so the economy grew slightly faster than expected.
The main reasons for the economic growth in the fourth quarter of last year were increased doctor visits, a sharp increase in Covid test and trace activities and the vaccination program.
Other important reasons for the growth were increased visits to travel agencies and employment agencies in the last three months of 2021.
But the British also saved a little less money in the last quarter of 2021 due to the cost of living crisis.
Darren Morgan, director of economic statistics at ONS, said: “Savings were at their lowest since the pandemic began as household spending surged, mainly on the back of rising prices.”
According to the ONS, the average UK household saved 6.8% of their income in the fourth quarter of last year, up from 7.5% in May-July.
That means the average household saved £6.80 for every £100 in the last three months of 2021, compared with £7.50 in the previous three months.
However, looking at December alone, despite the Christmas shopping spree, GDP fell 0.2% due to the Omicron strain of Covid hitting businesses.
Retail and hospitality were particularly hard hit, according to the ONS, but sectors like transport grew on an increase in online shopping.
GDP for all of 2021 was 7.4%, down from a forecast of 7.5%.
However, this follows a 9.3% drop in 2020 due to the impact of Covid.
The economies of countries like France, the US and Canada are now above their pre-Covid levels.
However, the ONS said it was a difficult time making that type of comparison.
https://www.mirror.co.uk/money/breaking-uk-economy-grows-13-26598777 The UK economy grows 1.3% - but the country is nearing pre-pandemic health