The British economy expanded 7.5% in 2021, bouncing back from its historic 9.4% crush in 2020 when Covid-19 restrictions hampered activity.
Source: Office for National Statistics
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On a quarterly basis, UK gross domestic product (GDP) is projected to have grown by 1% in the final three months of the year. It comes after a downwardly revised 1% growth in the prior quarter.
In December, GDP shrank by 0.2% as the omicron variant pushed for renewed containment measures, but economists surveyed by Reuters had expected a worse 0.6% contraction.
The largest drivers to the quarterly growth in output were from human health and social activities boosted by increased GP visits start of the quarter. The ONS stated that the economic output in Q4 remained 0.4% below its pre-pandemic level.
Emma Mogford, fund manager of the Premier Miton Monthly Income Fund stated that the UK’s self-imposed restrictions to ‘protect Christmas’ had only a small impact on growth in December.
Even though the Omicron variant did not pose a significant setback in November, the UK economy faces a series of challenges this year.