UK economy above pre-Covid level says ONS – Top-performing G7 country says OECD

Economic good news gets buried by focus on Downing Street parties

Montage © Facts4EU.Org 2022

Economic challenges remain but Britain is showing its chutzpah “despite Brexit”

Well, who would have thought it possible? We did. There was economic good news last week, but most people would be forgiven for not noticing, such is the fixation of the media on accusations of who has ‘partied’ when in Downing Street and Whitehall.

So, let’s tell you what you need to know right here.

Brexit Facts4EU.Org Summary

Latest economic good news – from the ONS and the OECD

1. UK economy bounces back from Covid-19

  • UK’s economy is now back above its pre-Covid (Feb 2020) level
  • GDP grew by 0.9% in Nov 2021 and is above its pre-pandemic level for the first time, by 0.7%

[Source: ONS, Jan 2021]

© Brexit Facts4EU.Org 2022 - click to enlarge

2. UK economy is fastest growing in the G7 major world economies

  • UK’s economy was growing faster than any of the major G7 countries in 2021, says Paris-based OECD
  • OECD predicts the UK will have grown twice as fast as EU economic powerhouse Germany in 2021

[Source: Latest OECD Economic Outlook, Dec 2021]

© Brexit Facts4EU.Org 2022 - click to enlarge

Brexit Britain’s growth confounds the Remainer pessimists

Last week the official UK figures showed that economic growth took the UK economy above its pre-Covid size for the first time in November 2021.

Estimates for the whole 2021 suggest UK economic growth will be approaching 7½% overall, with the final increase in UK GDP in the last quarter being put at 0.9% against Q4 of 2020. Overall, GDP grew by 1.1% in the three months to November 2021, reflecting the strong performance of the services sector.

This has to be seen in perspective, for critics of the Government and Brexit had predicted we would lag behind other European economies.

Ironically it is Germany that is the laggard in the top EU countries, with published estimates putting it last of the G7 with GDP falling by between -0.5% to -1.0%.

The naysayers have yet again been confounded

A survey of 100 economists in the devoutly Remainer Financial Times in December 2020 predicted that the UK would not repair its economy until the third quarter of 2022 – partly blaming Brexit – but we managed it before the end of 2021.

Still, despite the many examples of the UK outperforming against the pessimism and scaremongering they never learn. Now we have done it again.

Brexit Facts4EU.Org Summary

OECD forecasts UK will also be fastest-growing G7 economy this year too

  • The OECD forecasts the UK will also beat all G7 countries for economic growth in 2022

[Source: Latest OECD Economic Outlook, Dec 2021]

© Brexit Facts4EU.Org 2022 - click to enlarge

Challenges

There are still real concerns that we need to monitor. Inflation must be the top of these, with expectations that it may reach 6% – it is already 7% in the United States.

The cost of gas and energy are also big worries for industry and householders and could slow growth and feed into the inflation issue. The Government has the opportunity to head these problems off, and can be thankful to Brexit for having more flexibility than before.

Observations

Trust in the Prime Minister and the Government is a vital commodity in a democratic country and we do not seek to diminish the issue. However loss of perspective is an ever present challenge for the British media as their need for headlines that sell papers and generate advertising revenue from online click-throughs dominates their priorities. We have constant financial concerns at Facts4EU but we want to tell you what the real world is like.

Therefore the news that the economy has done well in November and in 2021 overall needs to be emphasised. This is not to say that the economy will remain in as good a position through the Winter – Omicron had not arrived in November and the further restrictions will no doubt set back the economy again in December and January. That said, what the UK achieved in 2021 can surely be replicated.

Other reasons to believe the UK can bounce back quickly are the strong UK jobs market, business investment rebounding, the fading threat from Covid as Omicron passes – and the Government and businesses taking advantage of Brexit opportunities.

Needless to say the last advantage over our European competitors – having achieved Brexit – is never considered as anything except a deadweight, yet it is quite the reverse. The Government has the opportunity to make changes such as reducing VAT on items such as energy costs. Additionally businesses can take advantage of new opportunities opening up – an example of which we reported last week.

What is required is political will to make the changes - something the Government has previously and surprisingly lacked. Maybe now it is under fire for breaking the very rules it asked everyone else to obey, maybe - just maybe - it will rediscover its ‘Get Brexit done’ purpose and make some genuine reforms in UK regulations that will open up the economy of the United Kingdom yet further.

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[ Sources: ONS report 14 Jan 2022 | OECD report Dec 2021 ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Mon 17 Jan 2022

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