UK economy delivers record growth in 2021 amid Covid rebound
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Boris Johnson’s Government is now preparing to tear up the Northern Ireland Protocol it pursued with the EU as Northern Irish politics grinds to a halt. Critics have suggested the agreement has stubbed British trade by setting up a border in the Irish Sea. But recent data shows that the UK is outperforming the EU in terms of post-Covid GDP growth, despite its obstacles.
Government figures submitted last week on May 12 showed growth among G7 members compared to pre-pandemic levels.
They showed that five members saw their GDP increase in the first quarter of 2022 compared to the final quarter of 2019.
The Eurozone had the lowest growth of those five, nearly half as much as the UK’s.
Compared to 2019, the area’s GDP growth is 0.4 percent greater, showing a successful Covid recovery.
The UK’s success is more pronounced, with a 0.7 percent increase in growth compared to the end of 2019.
Only the US, Canada and France are above the UK in comparative GDP growth.
They managed to grow GDP by 2.8 percent, 1.5 percent and one percent, respectively.
Italy and Germany saw their economies contract in the first quarter of 2022 compared to the last of 2019.
GDP growth in Europe during 2022 compared to 2019 has changed as follows:
- US: 2.8 percent
- Canada: 1.5 percent
- France: 1 percent
- UK: 0.7 percent
- Eurozone: 0.4 percent
- Italy: -0.4 precent
- Germany: -1 percent
The latest forecasts suggest that the UK will continue to outcompete EU GDP growth.
While the ongoing crisis in Ukraine has slightly damaged projected performance for the rest of 2022, the International Monetary Fund (IMF) expects British economic growth will rival the US’s later this year.
In 2022, the IMF has predicted UK GDP growth could reach 3.7 percent.
The rate is 0.9 percent higher than the 2.8 percent growth the IMF has predicted for the Eurozone.
And it matches what the IMF has predicted fr the US, which will also likely see its GDP increase by 3.7 percent.
Canada’s rate is on track to top the G7, with up to 3.9 percent growth in 2022.
The IMF has predicted that France, Japan, Italy and Germany will also see fewer than three percent GDP growth.
Despite its strong performance in the Q1 analysis, France will see around 2.9 percent, while Japan, Italy and Germany see 2.4 percent, 2.3 percent and 2.1 percent, respectively.
While the news is good for the UK, it comes with a caveat, as the UK calculates aspects of its GDP differently from some of the other countries in the G7, meaning comparisons are not always 100 percent representative.
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