Recent data releases are pointing towards a much better than expected return to strength for the UK, as restrictions continue to lift this week. Surprisingly for some, this data also shows recovery post-Brexit to be exceeding expectations also.
The Office for National Statistics have released data showing a GDP uplift of 2.1% across the 4 nations of the UK.
GDP (Gross Domestic Product) is the figure used to demonstrate the overall health of a country's economy. The GDP of a country is calculated by adding the following figures together: personal consumption; private investment; government spending; and exports (less imports).
The ongoing success of the UK's vaccination programme has led to an increase in personal consumption, as consumers head back to shops and restaurants, intent on spending some of the £100bn of savings that households have managed to make during the pandemic.
Private investment is also up, partially due to companies like Hargeaves Lansdown making investment simpler, and more accessible to younger generations.
Finally, in a slightly surprising set of figures, UK exports to the EU are back up to £12.7bn, not far off the £13.7bn recorded in December, prior to the 43% drop-off in January, casued by Britain's single-market departure.
Whilst exports are headed back to pre-Brexit levels, imports from the EU are still dramatically down, which when combined with the increased spending and investments, are leading to this rise in GDP.
Overall, with the success of the UK vaccination programme, and the (touch wood!) easing of restrictions developing in-line with the Government's recovery Roadmap, the UK economy looks set to keep bouncing back at a level higher than expected originally.
- written by Duncan Balcon for the KC Partner's Legal Brief - Full publication available at https://www.linkedin.com/company/kcpartners-ltd/posts/?feedView=all