Kate Andrews Kate Andrews

Britain’s remarkable economic recovery in 2021

With prices soaring, interest rates rising and the cost of living crisis growing more acute by the day, we could do with some more positive news: and this morning’s GDP update has played a small part in providing it.

Despite suffering the largest economic contraction in 300 years in 2020 – and taking the biggest economic hit in the G7 – Britain had the fastest growing economy in the G7 last year, boosting its GDP by 7.5 per cent.



It’s still a mixed story: looking at where the UK economy is now compared with pre-pandemic levels, it ranks average within the G7. But with one of the steepest hills to climb back to recovery, the UK’s relatively fast growth enabled the economy to get there several months before it was forecast to do so.

Crucially, December’s Covid scare didn’t drop the UK back below recovery levels.



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