MAGGIE PAGANO: Chancellor praises public on GDP figures

The newest GDP figures displaying that the financial system was again to its pre-pandemic stage in November recommend the restoration this yr might be much better than most economists have been predicting. 

The November figures – displaying progress of 0.9 per cent – had been increased than simply about all of the forecasts, with output enhancing throughout the financial system, and development and retail performing nicely. 

Put into context, this implies the financial system was 0.7 per cent bigger in November than in February 2020. These are all nice indicators that life is getting again to regular, though the tightening of Covid restrictions in December, coupled with workers absences and provide chain hiccups, might have slowed progress within the Christmas month. 

On manoeuvres?: Rishi Sunak was to welcome GDP figures by praising the public, saying the bounce-back was a 'testament to the grit and determination of the British people'


On manoeuvres?: Rishi Sunak was to welcome GDP figures by praising the public, saying the bounce-back was a ‘testomony to the grit and willpower of the British individuals’

But the gloom could also be overdone. As a number of the newest company outcomes have proven, December is probably not as unhealthy because the extra pessimistic economists are saying. Indeed, the ONS knowledge means that progress over the past quarter of 2021 is probably to achieve – and even be increased than – the pre-Covid stage, as long as financial output doesn’t dip by greater than 0.2 per cent in December. 

Whether this progress may be sustained over the subsequent few months is one other matter. The persevering with restrictions, rising power payments and better taxes on their approach in April may imply the restoration begins to falter. 

But on the opposite aspect of the equation, the UK has one of many strongest jobs markets on this planet, enterprise funding is on the up and there are faint indicators that inflation might have peaked at 5 per cent. 


As the OECD just lately forecast, the UK is on monitor to be the quickest rising financial system this yr among the many G7 international locations at 4.9 per cent, as long as provide chain issues and labour shortages don’t worsen. 

In distinction, the most recent figures from Germany present that the nation was badly caught out by the Omicron wave, which led to draconian restrictions. Its financial system suffered rising inflation in addition to persistent provide chain issues, with GDP within the final quarter falling by 0.5 per cent. 

If you have a look at the early full-year estimates of two.7 per cent progress for final yr, Germany is now the weakest financial system within the G7. It’s no shock that Rishi Sunak sounded so relieved yesterday on listening to the most recent figures. Seeing sterling again as much as its highest stage in opposition to a trade-weighted basket of currencies because the Brexit vote in June 2016 can even have cheered him up. 

What was attention-grabbing was how fast the Chancellor was to welcome the figures by praising the public, saying the bounce-back was a ‘testomony to the grit and willpower of the British individuals’. 


He bought the grit bit proper, and it was a much better recognition of the nation’s animal spirits than the same old politicians’ patronising quips about hard-working individuals. Sunak is clearly on manoeuvres.

Defending productiveness 

Defending the realm could also be a expensive affair, however it’s one which brings advantages in additional methods than one. 

Research commissioned by BAE Systems confirmed that in 2020 the defence group – which has greater than 50 websites across the nation – supported 143,000 jobs and contributed greater than £10billion to GDP, equal to 0.5 per cent of the financial system. 

More than 40 per cent of its employees are primarily based in essentially the most disadvantaged native authorities, communities by which BAE invests greater than £700million. Or you may name it levelling up. 

Benefits: Defending the realm may be a costly affair, but it's one that brings benefits in more ways than one

Benefits: Defending the realm could also be a expensive affair, however it’s one which brings advantages in additional methods than one

Two thirds of workers are in highly-skilled engineering roles with a mean productiveness of £83,000 per worker, some 17 per cent increased than the typical within the manufacturing sector and nearly 30 per cent increased than the typical. 

In 2020, BAE invested £93million in abilities and coaching on 2,000 apprentices and almost 600 graduates. This yr alone, BAE will recruit 1,700 apprentices and graduates. 

BAE’s analysis ought to be despatched pronto to Michael Gove – who is because of publish his long-awaited report into levelling-up – and Business Secretary Kwasi Kwarteng. There are two classes for them to remove. 

The non-public sector is by far the very best mechanism to distribute wealth, whereas the defence business is so precious to the financial system that the UK’s defence corporations shouldn’t be allowed to be devoured up by non-public fairness or abroad consumers. The takeover of Blue Prism involves thoughts.

Quiz champion 

Nicola Sturgeon might have clamped down on Scots going out over the Christmas interval, however Glasgow-based, excessive style retailer, Quiz, nonetheless managed to rejoice. 

Until the tightening restrictions, Quiz noticed gross sales climb by a fifth, doing nicely in shops and on-line. Good to know that womenfolk throughout the 4 nations are nonetheless dressing up for events – authorized ones, that’s.   

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