The collapse of the Corona virus in the British economy is no longer measured as the worst in 300 years | Business news

[ad_1]

The British economy is no longer believed to have suffered its biggest contraction in three centuries last year, according to revised official figures.

The Office for National Statistics said gross domestic product shrank 9.7% last year, a change from the previous estimate of 9.8%.

The downturn caused by the impact of the coronavirus pandemic crushing economic activity, has been described as the worst since the Great Frost of 1709.

Image: The second quarter of this year saw an increase in spending

But recent numbers point to a 2020 collapse, to two decimal places, at 9.69%, just below the 9.71% drop in 1921.

This means that the annual GDP decline caused by the pandemic was the worst in 99 years – not 311.

The Office for National Statistics said the revisions were the result of improved sources and methods, including better data on the financial sector, and removal of some of the effects of price changes.

The revised figures also showed that the British economy grew more strongly than previously thought in the second quarter of this year as consumers reined in their savings to fuel exorbitant spending.

Gross domestic product rose 5.5% in the April-June period, according to the Office for National Statistics, which estimated initial growth of 4.8%.

This means that by the middle of this year, Britain is closer than previously thought to regain the ground lost as a result of the coronavirus crisis.

The Office for National Statistics now believes that by the second quarter, GDP was 3.3% lower than it was at the end of 2019, after initially estimating a deficit of 4.4%.

Recent figures show that the recovery has since slowed sharply after supply chain issues such as a lack of 100,000 HGV drivers and a global chip shortage, as well as a “pandemic epidemic” forcing workers to isolate, leading to heavy losses.

But the second quarter was boosted by a 7.9% rebound in household spending after the economy reopened in the spring, which is four percentage points from the 5.5% growth figure.

The household saving rate fell sharply to 11.7%, down from 18.4% in the first quarter, the second highest rate ever.

Among the industries that benefited from the spending spree were the hotel and restaurant sector, up 87.6%, and wholesale and retail trade, up 13.1%, while hairdressing saw a rise of 20.4%.

The National Bureau of Statistics said the increases reflected the reopening of the economy as well as the economic boost from the Euro 2020 soccer tournament.

[ad_2]