# UK economy finally bigger than before pandemic in November Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-01-14 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UK economy surpasses pre-lockdown size in strong Nov. growth Meta Description: Official data shows a 0.9% growth in Nov., leaving GDP 0.7% larger than pre-lockdown. Despite challenges, the economy is on track for recovery. URL: https://financedigest.com/uk-economy-finally-bigger-than-before-pandemic-in-novemberhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-01-14t113115z4lynxmpei0d07frtroptp4britain-economy-1736816300825-compressed.jpg) By William Schomberg and Alistair Smout LONDON (Reuters) – Britain’s economy grew strongly in November to finally surpass its size just before the country went into its first COVID-19 lockdown, official data showed on Friday. The world’s fifth-biggest economy expanded by a much faster than expected 0.9% in November – before the latest wave of COVID-19 infections and restrictions for many firms – leaving it 0.7% bigger than it was in February 2020, the ONS said. Economists [polled by Reuters](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll") had forecast monthly gross domestic product growth of 0.4% for November. It’s amazing to [see the size of the economy back to pre-pandemic levels](https://www.financedigest.com/fraport-sees-2023-passenger-traffic-at-80-90-of-pre-pandemic-levels.html "Fraport sees 2023 passenger traffic at 80-90% of pre-pandemic levels") in November – a testament to the grit and determination of the British people,” finance minister Rishi Sunak said. Other economies have already recovered their pre-COVID size, chief among them the United States. Britain’s economy shrank by more than 9% in 2020, one of the [biggest pandemic slumps among the world’s](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World") rich nations. Despite November’s growth acceleration, GDP probably took a [fresh hit](https://www.financedigest.com/londons-ftse-100-hits-fresh-record-high-as-telecoms-surge.html "London’s FTSE 100 hits fresh record high as telecoms surge") in December when the Omicron coronavirus variant swept Europe, and the loss of momentum is likely to have stretched into January with many firms reporting severe staff absences and consumers still wary of going out. On Thursday, [data showed record](https://www.financedigest.com/ireland-fines-instagram-a-record-400-million-over-childrens-data.html "Ireland fines Instagram a record 0 million over children’s data") levels of staff absence due to COVID-19 around the turn of the year. But health officials think the Omicron infections wave has now peaked in Britain and analysts say the blow to the economy is likely to be short-lived, allowing the [Bank of England to continue raising interest rates](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates") this year. The ONS said, data revisions aside, GDP in quarterly terms would reach or surpass its pre-coronavirus level in the October-December period of 2021, as long as economic [output does not fall](https://www.financedigest.com/uk-manufacturers-expect-output-to-fall-3-2-in-2023.html "UK manufacturers expect output to fall 3.2% in 2023") by more than 0.2% in December. The [BoE’s current forecasts show GDP returning to its size at the end](https://www.financedigest.com/boe-raises-rates-again-as-investors-look-towards-end-of-hikes.html "BoE raises rates again as investors look towards end of hikes") of 2019 in the first quarter of 2022. EARLY [CHRISTMAS SHOPPERS](https://www.financedigest.com/british-shoppers-defy-cost-of-living-crisis-at-christmas.html "British shoppers defy cost-of-living crisis at Christmas"), MASS JABS The ONS said retailers had a [strong November – when many consumers bought Christmas](https://www.financedigest.com/aldi-uk-to-recruit-6000-after-strong-christmas-trading.html "Aldi UK to recruit 6,000 after strong Christmas trading") presents earlier than usual – while architects, couriers and accountants also had a bumper month. Construction recovered from several weak months as raw materials became easier to source after problems in [global supply](https://www.financedigest.com/oil-prices-steady-on-uncertain-global-outlook-and-supply-concerns.html "Oil prices steady on uncertain global outlook and supply concerns") chains. The country’s rush to give booster vaccinations against [COVID-19 and its test-and-trace programme provided](https://www.financedigest.com/recovery-bus-provides-cool-relief-for-s-koreas-covid-19-testers.html "‘Recovery bus’ provides cool relief for S.Korea’s COVID-19 testers") extra momentum to the GDP figures. Britain’s [economy will still face challenges](https://www.financedigest.com/global-economy-seen-facing-a-challenging-year-eurochambres.html "Global economy seen facing a challenging year -Eurochambres") in the months ahead, even once coronavirus restrictions known as “plan B” are relaxed. Consumers are facing an [inflation rate that is expected to reach a 30-year high of 6% or more in April – when energy tariffs will leap by an estimated 50% – and an increase in social security contributions also starting that month](https://www.financedigest.com/inflation-in-key-german-states-eases-for-second-month.html "Inflation in key German states eases for second month"). While the UK economy should rebound once Plan B measures are lifted, surging inflation and persistent supply chain disruption may mean that the UK’s economic growth prospects remain under pressure for much of 2022,” Suren Thiru, head of [economics at the British Chambers of Commerce](https://www.financedigest.com/how-digital-commerce-merchants-can-weather-the-economic-storm.html "How Digital Commerce Merchants Can Weather the Economic Storm"), said. [Sterling edged](https://www.financedigest.com/sterling-edges-lower-ahead-of-key-data.html "Sterling edges lower ahead of key data") up against the U.S. [dollar and the euro after the GDP data](https://www.financedigest.com/dollar-buoyant-as-robust-u-s-data-keep-fed-hawks-in-control.html "Dollar buoyant as robust U.S. data keep Fed hawks in control"). Separately, the ONS released trade [data showing that Britain’s](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") goods trade deficit narrowed slightly to 11.3 billion pounds in November from 11.8 billion pounds in October. Imports from non-European Union countries were higher than from EU countries for the 11th consecutive month, and the gap was at its widest point of the year, the ONS said. [Britain’s trading relationship with the EU has been hit by the introduction of new post-Brexit](https://www.financedigest.com/britain-delays-full-post-brexit-import-checks-until-late-2023-2.html "Britain delays full post-Brexit import checks until late 2023") rules after the country left the bloc’s single market at the start of 2021. (Writing by William Schomberg and Alistair Smout; Editing by Guy Faulconbridge, Toby Chopra, Peter Graff) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---