Although the UK economy was flat in February, revised figures for the previous month showed that it rose to pre-pandemic levels.
The Office for National Statistics stated on Thursday that the February growth rate was unchanged after an updated 0.4% increase in January. This was lower than the 0.1% expansion predicted in a Reuters poll.
The British economy ended February at 0.3% above the February 2020 level, prior to the Covid-19 restrictions. However, the UK’s recovery is still weaker than any other G7 country.
Services sector declined 0.1%, while construction saw a 2.4% increase.
Chancellor of the exchequer, Jeremy Hunt said that “the economic outlook is brighter than anticipated.” We are on track to avoid recession because of the massive steps we took to implement cost-of-living support for families, and radical reforms that boost the job market and increase business investment.This week, the IMF forecast that the UK’s economy would shrink by 0.3% in the year. That is a significant improvement from January’s 0.6% drop.