After the return of the children who were absent due to illness, the country’s economy in January shows an increase in GDP that exceeds forecasts
The children who they returned in schools after a December with many absences due to illness they offered a unexpected, extraordinary boost to the UK economy in January when GDP growth beat forecasts, according to figures released today.
The ONS office for national statistics he announced that the British economy expanded by 0.3% month-on-month after contracting 0.5% in December — a performance likely to further ease fears of a recession, at least in the short term. Economists polled by Reuters had expected a 0.1% increase.
The entertainment industrys – particularly with the return of the full schedule of Premier League football matches – was another factor helping the economy.
In a sign of deeper problems for the economy, the manufacturing and construction shrank.
“Looking beneath the surface, the data suggest the economy is on shakier ground than it appears,” said Ruth Gregory, senior executive at consultancy Capital Economics.
Martin Beckeconomic adviser at forecasting firm EY ITEM Club, said widespread strikes in December and January likely explain why the economy remained below its level in November.
The ONS said January’s GDP was 0.2% lower than pre-pandemic levels in February 2020 — in contrast to other developed economies — and recorded zero growth over the past three months and over the past year.
The British economy it has proved “more resilient than many expected, but there is still a long way to go,” said Chancellor of the Exchequer Jeremy Hunt, who presents his annual budget next week.
The ONS reported that half the 0.3% growth rate it concerns him education sector, as a result of children returning after a significant drop in school attendance in December. The government had already announced high rates of flu and scarlet fever during December. The fear of catching Covid-19 and falling ill during the December holidays was one of the reasons parents kept children at home earlier than usual. Education accounts for 6% of the UK economy and the number of pupils is the main way the ONS measures the quality of services provided by this sector.
Source :Skai
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