LONDON, Aug 19 (Reuters) – New figures released by the Office for National Statistics (ONS) indicate that the UK economy at the close of 2023 was approximately 2.2% above its pre-pandemic peak, revising earlier estimates of 1.9%. The adjustment follows methodological updates in calculating gross domestic product, incorporating enhanced data on research and development and revised metrics for the overseas operations of large multinational enterprises.\n\nAccording to Craig McLaren, ONS head of national accounts, the updated methodology now includes production by UK-owned firms abroad in the nation’s GDP, which has particularly benefited the pharmaceutical and broader manufacturing industries.\n\nDespite these adjustments, the overall trajectory of economic growth remains largely unchanged. Average annual growth from 1998 to 2023 continues to stand at 1.8%, with quarterly expansion averaging 0.5%.\n\nThe UK’s recovery since the pandemic has been slower compared to other advanced economies. As of June this year, GDP was 4.5% higher than in December 2019. In contrast, the euro area saw a 6.0% increase, and the United States nearly 13%, based on OECD statistics. Germany’s economy, meanwhile, has grown by just 0.3% since before the pandemic.\n\nPrime Minister Keir Starmer and Finance Minister Rachel Reeves have pledged to accelerate economic performance following their election victory last year, aiming to close the gap with global peers.\n— news from Reuters\n\n— News Original —\nUK economy was a bit bigger than thought at end of 2023, ONS says\nLONDON, Aug 19 (Reuters) – Britain ‘s economy at the end of 2023 is now estimated to have been 2.2% bigger than its peak immediately before the coronavirus pandemic, up slightly from a previous estimate of 1.9%, the Office for National Statistics said on Tuesday. n nThe ONS said the revision followed a regular update to the way it calculates gross domestic product including improved research and development data and changes to its measurement of the activity of large multinational companies. n nSign up here. n n”This work has had the effect of boosting pharmaceuticals and the manufacturing sector as their directly owned production abroad now counts towards UK GDP,” Craig McLaren, head of national accounts at the ONS, said in a blog. n n”Overall, there is little impact on growth from all these improvements, with average annual growth over the period 1998 to 2023 remaining at 1.8% and average quarterly growth remaining at 0.5%,” McLaren said. n nBritain ‘s post-pandemic recovery has lagged behind that of many other economies, something Prime Minister Keir Starmer and finance minister Rachel Reeves have promised voters they will change following last year ‘s national election. n nAt the end of June this year, British GDP was 4.5% higher than at the end of December 2019 compared with 6.0% growth in the euro zone and almost 13% in the U.S, according to data from the Organisation for Economic Cooperation and Development. n nHowever, Germany ‘s economy was only 0.3% bigger than before the pandemic.
