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Thursday, June 10, 2021

UK economy lags behind other countries in Covid recovery - BBC News

A shopper holds an umbrella decorated with the Union Jack flag
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The UK's recovery from the damage caused by the Covid pandemic lagged behind other big economies in the first three months of 2021.

Economic output was 8.7% below pre-pandemic levels at the end of 2019, said the Organisation for Economic Co-operation and Development (OECD).

Overall, the economic output of the G20 group of major economies edged ahead, led by India, Turkey and China.

But most others, such as Italy, Germany and the EU as a whole, shrank.

A country's Gross Domestic Product (GDP) or economic output measures how well or badly an economy is doing.

The OECD think tank said GDP in the G20 area returned to pre-pandemic levels in the first quarter of 2021, but with large differences across countries.

Chart of economies pre and post pandemic

Overall, the G20 grew slightly compared with the final three months of 2019, before the mass lockdowns and economic disruption caused by the Covid pandemic.

The UK and Italy recorded the largest falls from pre-pandemic GDP levels, down 8.7% and 6.4% respectively, while Germany, France, the euro area and the European Union all recorded declines of more than 4%.

Year-on-year, the G20 countries grew by 3.4% in the first three months of this year. China, which the OECD points out was affected by Covid at an earlier stage than other countries, recorded the highest annual growth at 18.3%, while the UK saw the biggest annual fall at minus 6.1%.

Last month, the OECD predicted that the UK economy's recovery from the pandemic would be stronger than previously thought.

It said the UK was likely to grow 7.2% in 2021, up from its March projection of 5.1%, making it the fastest among the large rich countries.

It also raised its forecast for global growth this year to 5.8%, compared with the 4.2% it predicted in December.

However, it warned that growth would not be shared evenly.

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