ONS has delivered good news – in November 2021, the size of the UK economy exceeded the pre-COVID level for the first time, albeit by a very small margin.
Growth in November was driven by services and construction – production activity remains rather depressed, however, especially manufacturing.
This is positive, but there are a number of downside risks which may reduce potential for further growth – most obvious is inflation, which increasingly threatens consumer confidence and spending power.
Also, there is currently no sign that economic growth lost due to COVID-19 will be recovered – the economic blow suffered by the UK is likely to be permanent.
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