UK economy fared better in 2022 than previously thought, new figures show

Revised official figures show economic growth was stronger during a year that the country faced double-digit inflation.

Anna Wise
Wednesday 07 August 2024 08:22 BST
The UK economy grew by more than expected during 2022 (Victoria Jones/PA)
The UK economy grew by more than expected during 2022 (Victoria Jones/PA) (PA Archive)

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The UK economy grew by more than expected during 2022, as revised official data showed the economy did better in the face of soaring inflation and post-pandemic recovery than previously thought.

The estimate for gross domestic product (GDP) rose from 4.3% to 4.8% in 2022, a larger than usual upgrade, according to the Office for National Statistics (ONS).

This was primarily driven by stronger growth in the transport, professional and business support services industries during the year.

Although it was partially offset by downgrades to growth in the manufacturing and healthcare sectors.

The revisions show economic growth was stronger during a year that the country faced double-digit inflation, which hit a peak of 11.1% in October 2022.

It was also a year marred by political instability and the mini-budget, delivered by former prime minister Liz Truss and chancellor Kwasi Kwarteng, which sent mortgage costs soaring.

The ONS said the new data fully reflects changes in the make-up of the economy for the first time following the Covid-19 pandemic, which led to major changes in how it operated.

For example, healthcare played a bigger role in the economy whereas hospitality and accommodation businesses took a big hit during the pandemic and had still not returned to normal levels in 2022.

It also made small revisions to previous years’ data, with GDP growing by 8.6% in 2021, down from the previous estimate of 8.7%, and falling by 10.3% in 2020, up from the previous estimate of a 10.4% decline.

The ONS said that access to a more extensive dataset could also lead to revisions to its 2023 and 2024 GDP estimates.

These new statistics will be published on September 30.

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