UK economy grows 0.1% in Q1 but still weakest among G-7

British economy remained 0.5% smaller in Q1 2021 than Q4 2019, shortly before COVID-19 pandemic hit

By Aysu Bicer

LONDON (AA) – The British economy saw a 0.1% growth in the first quarter, experiencing slight expansion over the past two quarters but remained the weakest among Group of Seven economies, official figures showed on Friday.

According to the Office for National Statistics (ONS), the construction sector expanded by 0.7% and manufacturing grew by 0.5%, led by basic metals and the production of computer, electronic, and optical products.

However, there were declines in education (-0.7%), health (-0.5%), public administration and defense (-0.7%), and transport and storage (-1%).

The latest gross domestic product report revealed that the UK economy was still 0.5% smaller in the first quarter of 2021 compared to the fourth quarter of 2019, just before the COVID-19 pandemic hit.

In contrast, France's economy grew by 1.3%, and Germany's economy contracted by only 0.1% since the first quarter of 2019.

Meanwhile, the US economy significantly outperformed with a growth rate of 5.3% compared to its pre-COVID size.

The US benefited from substantial stimulus packages and faced less impact from rising energy prices compared to Europe.

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