The economy of Britain bounced back faster than expected from the adverse effects of the new COVID-19 variant, Omicron, in January. This month witnessed more people returning to drinking in pubs and eating out at restaurants. According to reports issued by The Office for National Statistics (ONS), all of the sectors of the British economy regained their growth gradually after the Omicron wave triggering a lift in the gross domestic product by 0.8% in the month of January from December last year. This growth has been widely witnessed in those sectors that deal directly with consumers.
Kavan Choksi– UK is witnessing growth in its economic sectors
According to eminent business and finance expert Kavan Choksi, the GDP in the UK was predicted to become 0.8% more than its pre-pandemic levels to reflect a reduced impact on its economy. Economists expected this trend as the Omicron variant of the coronavirus led to an increase in infections after its advent in the nation. It was due to these Omicron infections that significant economists in the UK predicted a growth of 0.2% during that time.
Bouncing back fast after a slowdown
The latest reports from the ONS revealed that all of the economic sectors in the UK witnessed growth in January after suffering from a significant slowdown in the month of December. Consumers returned to retail stores, wholesale outlets, restaurants, and takeaways in January, and this triggered a growth in the economy. Besides the above industries, film and TV production houses and computer programming firms had a good beginning in 2022 as well.
The wholesale trade-main driver of economic growth in the UK
The main driver of economic growth in the UK in January was wholesale trade, which went up to 3.8%. This bounce back was in the middle of a weak economy in December due to the Omicron variant of the coronavirus. There were ongoing problems in the supply chain for some economic sectors; however, the output in the manufacturing and construction industries increased for three months at a stretch.
Activity in the food and beverage sector rose in January
Consumers started to return to pubs and restaurants, resulting in the activity of the food and beverage industry rising by 6.8% after it fell by 8.1% in December. This fall was caused due to massive cancellation of bookings for Xmas gatherings and parties.
Is the UK now free of economic threats?
According to business expert Kavan Choksi, this fast economic bounce back of the UK amid the Omicron variant crisis is commendable. However, the UK economy still is not entirely free from global shocks like the ongoing Ukraine-Russian war. This is why the government is presently taking measures to combat any potential adverse effects on their economy by this war.
In order to combat the soaring inflation, rising energy costs, and higher taxes, the Government of the UK announced a sum of £9bn in monetary support for people that faced a drastic rise in their household energy bills since April. However, there is mounting pressure on authorities to offer a similar package for the sudden increase in electricity and gas prices as well by householders in the UK struggling to pay their bills.