The UK economy grew by just 0.1% in February, despite a strong resurgence of both inbound and outbound tourism activity – including travel agencies, hotels, and tour operators.
But growth has slowed sharply since January, when gross domestic product (GDP) jumped by 0.8% as people returned to normal life following a surge in Omicron rates in December 2021.
The figure of 0.1% for February falls short of the 0.3% growth predicted by most analysts.
Data from the Office for National Statistics (ONS) showed that monthly GDP is now 1.5% above its pre-pandemic level of February 2020.
But despite a rise in tourism, the economy was dragged down by a fall in production, which slipped by 0.6% and construction, which fell by 0.1%, the ONS said.
Car production in particular has fallen steeply in recent months, pushed down by the ongoing chip shortage and the closure of Honda’s plant in Swindon.
Growth was also hampered by the reduction in the NHS Test and Trace and vaccination programmes, which made a strong contribution to GDP at the start of the year, according to Darren Morgan, director of economic statistics at the ONS.
The UK’s economy grew by 7.4% last year in a record rebound from a devastating 2020, when it suffered its biggest annual fall since just after World War One.
But last month, Chancellor of the Exchequer Rishi Sunak revised down the UK’s 2022 growth forecast to 3.8% from 6% in light of the growing cost of living crisis and surging energy prices following Russia’s invasion Ukraine.
In a statement on Monday following the release of the most recent GDP figures, Mr Sunak said: “I welcome the positive growth seen across the economy in February, which continues to recover from the pandemic, boosted by the support we provided.”
“Russia’s invasion of Ukraine is creating…
Source : skynews
