UK Economy Lags Behind G7

The United Kingdom lagged behind its counterparts in the G7 as its economic recovery from the COVID-19 pandemic slowed down in the third quarter.

Britain’s gross domestic product grew 1.3 percent from July to September, down from the 5.5 percent growth during the previous quarter when lockdown restrictions were lifted, figures from the Office for National Statistics (ONS) showed.

The slowdown in growth pulled the quarterly level of economic output just 2.1 percent short of its pre-pandemic level. Labor shortages, supply chain issues, and higher prices of oil during the period have contributed to weaker growth.

Services—a large chunk of Britain’s GDP—primarily drove economic recovery as the hospitality sector was boosted by 30 percent. Meanwhile, the hurt in growth was mainly felt through the general production sector where manufacturing saw a 0.3 percent decline and construction a 1.5 percent fall.

Britain’s third-quarter growth was the slowest in the G7 countries: the U.S. reached 1.4 percent above its pre-pandemic level, France just 0.1 percent below and Italy 1.4 percent, while Germany has only 1.5 percent to catch up.

In its economic outlook released in October, the International Monetary Fund had forecasted that the U.K. would experience the slowest recovery in the group of the most advanced countries and its economy would be 3 percent smaller in 2024.

© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.