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The UK economy is growing by 1.3% and is approaching the level of a pandemic

Great Britain savings grew 1.3 percent by the end of last year, with GDP now just below pre-pandemic level.

The Office for National Statistics (ONS) said the growth was greater than originally thought.

Earlier, he estimated that GDP grew by 1.0 percent in the last months of last year.

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

Darren Morgan, director of economic statistics for ONS, said: “GDP has grown slightly stronger than we originally thought in the fourth quarter, which means it is now only 0.1 percent below pre-pandemic levels.”

The revision of GDP over the past two years means that the economy grew by 7.4 percent in 2021. It was still a record rebound, but lower than the original estimate of 7.5 percent.

The ONS said it came after it revised a record drop in GDP in the midst of a pandemic in 2020 to 9.3 percent against an initial estimate of 9.4 percent.

But the latest economic growth occurs against the background of the cost of living crisis, largely due to high household bills. On Friday, they will grow even more because of another rising energy prices.

Last week the Office of Budget Accountability even warned the UK set for the biggest drop in living standards since the record began. An official forecaster has warned that rising inflation is “eroding real incomes and consumption” in a way that will cut GDP growth this year.

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

Mr Morgan, director of economic statistics, said: “Savings have been at their lowest level since the start of the pandemic as household spending has risen, mainly due to rising prices.”

The UK economy is growing by 1.3% and is approaching the level of a pandemic

Source link The UK economy is growing by 1.3% and is approaching the level of a pandemic

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