Economic growth for 2021 highest on record

economic growth

Economic growth for 2021 highest on record

Economic growth has reportedly hit a new record for 2021 and the chancellor has praised the public’s resilience throughout the Covid pandemic.

The Office for National Statistics (ONS) revealed that the economy grew by 7.5 percent in 2021.

It is unsurprising that economic growth figures appear to have skyrocketed following the devastating plummet in 2020 (the worst in 99 years) due to Covid lockdowns.

Despite restrictions and complications occurring during December due to the Omicron variant, England still pulled through.

However, many have indicated that economic growth could still face some hits due to incoming supply chain disruptions and price hikes.

The ONS highlighted that business was lost for hospitality and consumers as more purchases for Christmas were made months in advance to prepare for Covid restrictions and shortages.

The hope now is that, when all coronavirus restrictions end within the month, economy growth will continue to rise further, but it is still unclear how this will truly affect staff shortages and more.

Currently, a third of businesses – who depend on consumers – recorded lower than average revenues, Sky News reported.

The energy price cap uplift of nearly £700 is also due to come into effect from April, which will subsequently impact England’s economic growth.

Chancellor Rishi Sunak reportedly said: “Thanks to our £400bn package of support and making the right calls at the right time, the economy has been remarkably resilient; with the UK seeing the fastest growth in the G7 last year and GDP remaining at pre-pandemic levels in December.

“I’m proud of the resolve the whole country has demonstrated, and proud of our incredible vaccine programme which has allowed the economy to stay open.

“We’re continuing to help the economy rebuild through our Plan for Jobs, boost for business investment and support for households with the cost of living.”

CBI chief economist, Rain Newton-Smith, added: “Firms are still grappling with supply shortages and cost pressures, while households are facing a looming cost of living crisis.

“We’re caught in a low growth trap, and the only way to get out is a relentless focus on competitiveness.”

Speaking on economic growth, they said: “A 100 percent permanent investment deduction can trigger a chain reaction of business spending across the whole economy.

“And a future-focused approach to regulation and skills will be vital to help us avoid another lost decade of growth.”

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Lauren joined the Gi Media team in August 2021.