Blitz Bureau
Britain’s economy grew more strongly than previously thought in 2022, according to revised official data that gave more weight to the oil and gas sector which was buoyed by high prices and the health service as it caught up with COVID-19 backlogs.
The Office for National Statistics (ONS) said on August 7 it now believed that Britain’s economy grew by 4.8% in 2022, up from a previous estimate of 4.3%.
Slumped by 10.3%
Revisions to GDP in the two years before that – when the economy slumped by 10.3% in 2020 during the pandemic before bouncing back by 8.6% in 2021 – were minimal, the ONS said as it published its annual revisions to past data. The ONS said it had
updated the way it weights sectors of the economy within the overall GDP data, with mining and quarrying now larger relative to other sectors, reflecting the increase in oil and gas prices. The health sector was also given more weight as it was busier than usual after the pandemic. Manufacturing, with bigger costs reducing its contribution to the economy, and the accommodation and food sector, which has not returned to its pre-pandemic levels, were both relatively smaller than they were in 2019, the ONS said.
The revisions would be extended to data for 2023 and 2024 so far on September 30, the ONS said.
Consumer confidence
There are a number of reasons for optimism about the economy. Consumption has been supported by the cuts to National Insurance Contributions, which are expected to boost real household disposable income by 1%. Consumer confidence is gradually recovering, consistent with continued tightness in the labour market and the fall in inflation. Mortgage rates are normalising, and the drag from higher borrowing costs should soon begin to ease. Household utility bills fell by 12% in April and are set to fall by a further 7% in July.
