Latest GDP figures confirm UK economy grows 0.8 per cent as Covid fears subside
Official data from the Office for National Statistics (ONS) showed that gross domestic product (GDP) grew by 0.8 per cent in January as the hit from the Omicron variant subsided.
It more than reversed the entire 0.2 per cent fall that had been observed in December.
Experts had predicted a 0.1 per cent rise in GDP in January, according to a consensus supplied by Pantheon Macroeconomics.
ONS director of economic statistics Darren Morgan said: “GDP bounced back from the hit it took in December due to the Omicron wave and is now 0.8 per cent above its pre-pandemic peak.
“All sectors grew in January with some industries that were hit particularly hard in December now performing well, including wholesaling, retailing, restaurants and takeaways. Computer programming and film and television production also had a good start to the year,” he added.
“While supply chain issues persisted in certain sectors, output in both construction and manufacturing grew for the third month running.”
Chancellor response
Chancellor of the Exchequer, Rishi Sunak said this morning: “We have provided unprecedented support throughout the pandemic, which has put our economy in a strong position to deal with current cost of living challenges.
“We know that Russia’s invasion of Ukraine is creating significant economic uncertainty and we will continue to monitor its impact on the UK, but it is vital that we stand with the people of Ukraine to uphold our shared values of freedom and democracy and ensure Putin fails.”