UK economy bigger than previously estimated by end of 2023? ONS

The UK economy was bigger than previously estimated at the end of 2023, according to revised official figures.

The Office for National Statistics, ONS, said revised data showed that the economy was 2.2% larger at the end of 2023 than its previous peak shortly before the coronavirus pandemic began.

It had previously reported that the economy had grown by 1.9% over the period.

The ONS said the improved data came after a regular update over how it calculates UK gross domestic product, GDP.

It said the change was linked to improved data regarding research and development, as well as an improved measure of how its records the activity of large multinational companies.

Later data from corporation tax returns meant that growth in 2022 was stronger than previous predicted, with the data highlighting stronger profits than previously estimated.

The ONS also highlighted that the research included improvements to the way education statistics were measures, indicating that the decline in the sector in 2020 was smaller than previously reported.

However, it added that education then ‘recovered less quickly in the years following the pandemic’, meaning it has grown slightly less than originally believed.

Craig McLaren, head of national accounts for the ONS, said: ‘While the size of the economy now captured by GDP has increased, the long-term pattern of growth is broadly unchanged.

‘These improvements announced today help ensure we can continue to provide high-quality estimates of the size and shape of our ever-changing and increasingly digital and globalised economy.’

By Henry Saker-Clark, PA Deputy Business Editor

Press Association: Finance

source: PA

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