Economy bounced back by 7.5% last year, strongest growth since World War Two

11 February 2022, 09:51 | Updated: 11 February 2022, 12:23

The economy grew by 1% in 2021, despite a record 9.4% slump in 2020.
The economy grew by 1% in 2021, despite a record 9.4% slump in 2020. Picture: Alamy

By Elizabeth Haigh

The UK's economy rebounded by a record 7.5% in 2021, official figures show, the fastest since World War Two.

Listen to this article

Loading audio...

The 7.5% figures refers to the UK's GDP, the quickest rebound since ONS records began in 1948, and exceeded the Bank of England's expectations.

In the final three months of 2021, the economy grew by 1%, after suffering a record 9.4% slump in 2020 during the pandemic.

This included a 1.2% growth in service industries, making the sector 0.5% bigger than pre-pandemic levels.

This was despite a 0.2% contraction in the economy in December 2021, and two years of chaos for service and hospitality venues.

Read more: 'Holidays are back': Covid travel testing scrapped as half-term getaways begin

Production output in the last quarter of 2021 dropped by 0.4%.

Inflation levels also continue to cause woes, with the cost of living rapidly increasing and millions of Brits facing a crisis this year over how to pay their bills.

A large part of the problem is rising energy costs, with customers now facing an average rise in bills of £700.

Read more: Queen shows no signs of Covid but faces days of tests after Prince Charles gets virus

'The Chancellor is effectively taking a worrying gamble with people's finances.'

ONS director of economic statistics Darren Morgan said: "GDP fell back slightly in December as the Omicron wave hit, with retail and hospitality seeing the biggest impacts.

"However, these were partially offset by increases in the Test and Trace service and vaccination programmes.

"Despite December's setback, GDP grew robustly across the fourth quarter as a whole, with the NHS, couriers and employment agencies all helping to support the economy."

Mr Morgan added that although GDP in December was in line with levels from February 2020, the fourth quarter as a whole was "slightly below" the same period in 2019, before the pandemic struck.

Chancellor of the Exchequer Rishi Sunak said: "Thanks to our £400 billion 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."

More Latest News

See more More Latest News

Gino D'Acampo

TV chef Gino D'Acampo accused of 'unacceptable' and 'distressing' behaviour spanning 12 years

Exclusive
'I feel like Mrs Bates VS The Council': Pub landlady considers legal action over council flooding team's 'lack of action'

'It's like Mrs Bates VS The Council': Pub landlady considers legal action over council flooding team's 'lack of action'

Liz Kendall

Too many people on benefits are 'taking the mickey' - but there are more people who want to work, says minister

Exclusive
Lauren Selkirk

School refuses to tell mum why staff member 'removed' after incident involving her daughter, 5, and social workers

Kanye West, left, and Bianca Censori arrive at the 67th annual Grammy Awards on Sunday, Feb. 2, 2025, in Los Angeles. (Photo by Jordan Strauss/Invision/AP)

Bianca Censori shares true feelings towards Kanye West's nude Grammys stunt

Landlords face £6k bill to meet higher energy efficiency standards on rental homes by 2030 under government plans

Landlords face £6k bill to meet higher energy efficiency targets under government plans

Pope Francis meets Prince Charles, Prince of Wales and his wife Camilla Duchess of Cornwall at the Vatican on April 4, 2017.

King Charles and Queen Camilla to meet Pope Francis during state visit to Italy

A British couple was reportedly found dead by a neighbour in Les Pesquiès, south of Villefranche-de-Rouergue.

British couple found dead inside 'isolated' French villa in 'feared burglary gone wrong'

Exclusive
Commuter backlash after Network Rail 'erases trains from departure boards' early to 'ease rush'

Commuter backlash after Network Rail 'erases trains from departure boards early' to 'ease passenger rush'

b

Knife arches in schools are welcome - but who is going to pay for them?

James Evans, 19, left, and Justin Keeling (formerly Evans), 18, right, have admitted to starting a massive fire that sparked a mass evacuation.

Two teens admit starting huge fire that 'ripped residents out of homes' during summer riots

Inga Gehricke, five, went missing following a family barbecue in Germany back in 2015.

Police launch fresh search efforts for missing girl linked to prime Madeleine McCann suspect

v

School named after Prince Andrew set to rebrand to something less 'controversial'

The Princess Royal during a visit to Southmead Hospital in Bristol to thank the team of doctors, nurses and health professionals who treated her following her accident in June 2024.

Princess Anne returns to the intensive care unit where she had treatment for head injuries

A utility firm has admitted its equipment started one of the LA fires last month.

California utility says its equipment likely sparked fire that raged through LA

Yusuf Kayat, 54, from Dewsbury, West Yorkshire, has been jailed for 20 years

Paedophile who plied girl, 10, with alcohol, cigarettes, and cannabis before grooming her for sex with other men jailed