UK economy grows stronger than projections in Q3 2021: ONS

Annual UK GDP in 2020 is now estimated to have fallen by 9.4 per cent, revised from a first quarterly estimate of minus 9.7 per cent.

In output terms, the largest contributors to the increase in Q3 2021 were hospitality and arts, entertainment and recreation following the further easing of restrictions and reopening of the economy during this period; production and construction both fell.

Household consumption rose by an upwardly revised 2.7 per cent in Q3 2021 and made the largest contribution to expenditure; there was a fall in underlying inventories, likely reflecting some of the recent supply chain challenges; and a negative contribution from net trade, the Office of National Statistics said.

The UK’s net borrowing position with the rest of the world increased to negative 4.3 per cent as a percentage of GDP in Q3 2021 compared with minus 2.4 per cent of GDP in Q2.

UK GDP is estimated to have increased by 1.1 per cent in Q3 2021, revised down from the first quarterly estimate of a 1.3 per cent increase. This follows a revised increase of 5.4 per cent in Q2 2021 following the easing of COVID-19 restrictions. The level of real quarterly GDP in the UK is now 1.5 per cent below where it was prior to the pandemic at the end of 2019, revised from 2.1 per cent.

Fibre2Fashion News Desk (DS)