2021 saw UK economy expand at slowest rate since 2012

The ONS (Office for National Statistics) reported that the development in 2021 was 1.4% down from 1.8% in 2021. Even more worryingly this is the lowest rate since 2012.

According to the ONS, quarterly growth also slowed, falling to 0.2% in the three months to December – down from 0.6% in the three months to September.

A decline in car production and factory output were a few of the main factors that caused the slower growth.

Head of GDP at the ONS Rob Kent-Smith said: “GDP slowed within the last 3 months of the season using the manufacturing of cars and steel products seeing steep falls and construction also declining.

“However, services grew even larger using the health sector, management consultants also it all succeeding.”

John McDonnell MP, Labour's Shadow Chancellor, responding to the most recent GDP figures, said:

“The evidence is mounting that the combination of the Government's shambolic handling of Brexit and nine many years of austerity is causing real harm to our economy.

“Business investment has been falling for months now, as uncertainty and also the fear of No Deal cause immediate harm to confidence.

“Six consecutive months of decline for that manufacturing sector hasn't happened since 2009.

“The Government must take action now to consider No Deal off the table and Philip Hammond must use his Spring Statement to finish the disastrous austerity policy that has done so much to damage the economy.”

Despite these worrying indicators from the health of the UK economy Philip Hammond, the chancellor, said the most recent figures demonstrated that Britain's economy remained in a strong position.

Hammond said: “The UK is currently enjoying the longest unbroken quarterly growth streak of any G7 nation.”

Last week the Bank of England cut its forecast for growth this season by 0.5 percentage points to 1.2 percent, which may be the weakest year because the 2009 recession.