Gareth Davies MP has strongly welcomed new revised data from the Office for National Statistics (ONS) which shows that the British economy recovered to its pre-pandemic size in 2021 - over a year sooner than previously thought - ahead of Germany, Japan, Italy and France. As a result, the economy is now 1.8% larger than it was before the pandemic, with faster growth than France and Germany since 2020.
In addition to this positive news, encouraging updates on inflation show that it is down 40% on its peak and on course to halve this year. The independent Bank of England has also decided to pause interest rate rises, prompting a reduction in average mortgage rates.
Meanwhile, the labour market continues to post strong numbers on pay and employment. Not only are there more people in work, but they are able to keep more of what they earn. In June to August, annual growth in pay was above inflation at 7.8%, and there are 1.1 million more people on payrolls since the start of the pandemic.
The Government has named halving inflation and growing the economy as priorities for this year.
Gareth said:
“After months of pessimistic commentary on the UK’s performance relative to our peers, this new data turns that narrative on its head.
The British economy and the British people have proven time and again to be incredibly resilient. After three global economic crises in fifteen years, and two in the last three years, it turns out this is more true than any of us knew.
There are encouraging signs across the board that we are moving in the right direction, so we must stick to the plan in the long-term interest of the country.”
