Britain suffered the sharpest financial hit from the COVID-19 pandemic amongst Group of Seven nations even accounting for large variations in the way in which authorities spending is measured, an evaluation by the nation’s statisticians urged.
Official figures have beforehand proven that Britain suffered the most important drop in financial output – adjusted for inflation – within the G7 between the primary and third quarters of 2020.
Final month finance minister Rishi Sunak mentioned the way in which Britain measured its financial output flattered different nations and the nation’s efficiency was not the worst amongst its friends.
On Monday, the Workplace for Nationwide Statistics mentioned a few of Britain’s hunch may certainly be defined by the way in which the output of presidency providers similar to schooling and healthcare was measured and it was exhausting to make worldwide comparisons.
“However one useful strategy is to take away quantity estimates of presidency consumption expenditure – this reveals that the UK has nonetheless skilled the biggest contraction however that the relative comparability with the remainder of the G7 is just not as massive.”
Britain additionally suffered the G7’s largest drop in family spending, the ONS mentioned, noting that the nation’s lockdown restrictions have typically been tighter and had been imposed for longer.
The general financial influence of lockdowns and social distancing might have been larger in Britain as a result of social spending, similar to consuming out and holidays, is extra dominant than in different nations, it mentioned.
Britain has had one of many world’s highest COVID-19 mortality charges, one other issue seen as weighing on the financial system.
In nominal phrases – unadjusted for inflation – the collapse in financial output seen in Britain was “broadly comparable” to different G7 nations, and never as unhealthy the drop seen in Canada, Italy or Germany, the ONS mentioned.
Nonetheless, worldwide comparisons of financial efficiency are sometimes measured utilizing inflation-adjusted figures.
The ONS additionally mentioned the measurement components which weighed notably on Britain’s financial knowledge through the second quarter of 2020 must have been seen in reverse in a rebound within the third quarter.
However that didn’t totally transpire, with France reporting a much bigger upturn that quarter.
Revised knowledge which will probably be printed sooner or later by Britain and different nations may additional alter the image, the ONS mentioned.