UK economic growth stronger than expected: ONS 

Britain's economic performance has been stronger than previously thought since the start of the COVID-19 pandemic, with faster growth than Germany or France, according to revisions to official data released on Friday.

Economic performance 

The Office of National Statistics (ONS) reported that the UK's economy in Q2 2023 was 1.8 per cent larger than in the final quarter of 2019 before the pandemic began. This marks an upward revision from the August 11 estimate, which indicated the economy was still 0.2 per cent smaller than its pre-pandemic size, placing it at the bottom among major advanced economies.

The UK's growth of 1.8 per cent surpasses France's 1.7 per cent and Germany's 0.2 per cent but falls behind the United States' 6.1 per cent expansion and lags compared to Japan, Italy, or Canada. Despite the revised growth figures, the cost of living remains a significant challenge for many UK households. Finance Minister Jeremy Hunt noted that the data demonstrates the UK's ability to recover faster than expected.

Rising inflation

The Bank of England's decision to raise interest rates multiple times since December 2021 has contributed to containing rising inflation. Still, the central bank unexpectedly kept rates unchanged at 5.25 per cent last week. While the revised data shows more robust growth during the pandemic, it also reveals that the UK economy has lagged behind most other G7 countries, aside from Germany and France, since the pandemic began. Economists warn that higher interest rates could pose further risks to the UK's economic recovery.

(With Reuters Inputs)