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February 11, 2022UK GDP Q4 AND ANNUAL 2021 (FIRST ESTIMATE) 
The Office for National Statistics (ONS)' first estimate of UK Gross Domestic Product (seasonally adjusted annualized rate) for Q4 2021 reports growth of 3.9% following a growth of 4.0% in Q3. Compared to pre-pandemic quarter (Q4 2019), the UK economy is 0.4% smaller in Q4 2021. For Q4 2021, output increased in services on higher human health and social work activities. Construction output rose and production output fell for the quarter.
Services output grew in Q4 with increased activity in human health and social work activities primarily driven by an increase in COVID-19 testing, tracing and vaccination activities. Services output also increased in administrative and support activities and transport and storage. Accommodation and food services, wholesale and retail trade activity declined due to Omicron variant. Services output is now 0.5% above pre-pandemic levels.
Production activity was 3.6% lower than pre-pandemic levels. The quarterly decline was driven by lower electricity, gas, steam and air conditioning supply, and mining and quarrying. Manufacturing output was broadly flat in Q4.
Construction output increased 1.0% in Q4 reflecting increases in new work and repair and maintenance.
The Office for National Statistics notes that UK economic growth increased 7.5% in 2021, following a 9.4% decrease in 2020. Household consumption increased 6.1% and gross fixed capital formation increased 5.3% compared with 2020.
Office for National Statistics
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