London Daily

Focus on the big picture.
Friday, Oct 02, 2026

UK economy lags behind other countries in Covid recovery

UK economy lags behind other countries in Covid recovery

The UK's recovery from the damage caused by the Covid pandemic lagged behind other big economies in the first three months of 2021.

Economic output was 8.7% below pre-pandemic levels at the end of 2019, said the Organisation for Economic Co-operation and Development (OECD).

Overall, the economic output of the G20 group of major economies edged ahead, led by India, Turkey and China.

But most others, such as Italy, Germany and the EU as a whole, shrank.

A country's Gross Domestic Product (GDP) or economic output measures how well or badly an economy is doing.

The OECD think tank said GDP in the G20 area returned to pre-pandemic levels in the first quarter of 2021, but with large differences across countries.


Overall, the G20 grew slightly compared with the final three months of 2019, before the mass lockdowns and economic disruption caused by the Covid pandemic.

The UK and Italy recorded the largest falls from pre-pandemic GDP levels, down 8.7% and 6.4% respectively, while Germany, France, the euro area and the European Union all recorded declines of more than 4%.

Year-on-year, the G20 countries grew by 3.4% in the first three months of this year. China, which the OECD points out was affected by Covid at an earlier stage than other countries, recorded the highest annual growth at 18.3%, while the UK saw the biggest annual fall at minus 6.1%.

Last month, the OECD predicted that the UK economy's recovery from the pandemic would be stronger than previously thought.

It said the UK was likely to grow 7.2% in 2021, up from its March projection of 5.1%, making it the fastest among the large rich countries.

It also raised its forecast for global growth this year to 5.8%, compared with the 4.2% it predicted in December.

However, it warned that growth would not be shared evenly.


The global economy is slowly recovering - but there's still a great deal of uncertainty about the future, and the picture can vary wildly from region to region.

It's not hard to see why. Although the pandemic has cut a swathe through countries around the world over the past year, there have been big differences in the timing of outbreaks, as well as in the speed and nature of national responses.

In wealthier countries in particular, the progress of vaccination programmes is now providing grounds for optimism that a return to normality is not too far away. But that has to be balanced by concerns about the potential impact of new variants of the virus.

Such uncertainty is reflected in the European Central Bank's decision today to maintain its Covid-related economic stimulus programme, despite increasing its forecasts for both growth and inflation in the eurozone.

If the past year has shown us anything, it's that predicting the course of the pandemic is anything but straightforward - and the path to recovery is unlikely to be smooth.

Newsletter

Related Articles

0:00
0:00
Close
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Chancellor John Healey Faces Tax and Pension Scrutiny Ahead of Autumn Budget
Metropolitan Police Apologise for Accidental Disclosure in High-Profile Investigation
UK Universities Report Record International Enrolment as Housing Pressure Grows
UK Logistics Firms Monitor Rhine Disruption as Low Water Threatens European Supply Chains
UK Food Industry Warns Inflation Could Approach 7%
UK Introduces Vaping Duty and Mandatory Retail Stamps
Scotland Raises Property Taxes and Expands Child Payment in Annual Budget
Greggs Plans Four Factory Closures With 740 Jobs at Risk
OECD Raises UK 2026 Growth Forecast to 1.1%
UK Inflation Rises to 3.1% as Bank of England Faces Rate Debate
Andy Burnham Criticises Brexit and Says Rejoining EU Single Market Remains an Option
UK Imposes New Sanctions on Russian Military Networks and Propagandists
UK Launches Nationwide Early-Release Prison Scheme
Andy Burnham Says Security Services See Signs of Iranian Involvement in RAF Fairford Incident
Manchester City Found Guilty on Premier League Financial Charges After Independent Investigation
Scottish Court to Rule on Bid to Force No-Confidence Vote Against Aberdeen Council Co-Leader
UK Bans Extra Charges for Seating Children Under 12 Beside Accompanying Adults
UK Introduces Vaping Duty and New Licensing Requirements
Greggs to Close Four UK Factories and Cut 740 Jobs
Hundreds of Prisoners Released Early as England and Wales Prisons Reach 98% Capacity
UK Unveils New Russia Sanctions Targeting War Funding and Shadow Fleet
Burnham Says There Are Strong Indications of Iranian Involvement in RAF Fairford Security Breach
Prime Minister Andy Burnham Raises Prospect of Reviewing Britain's Post-Brexit EU Relationship
Markets Price in Bank of England Rate Increases as Inflation Rises to 3.1%
UK Borrowing Costs Climb Toward 5.5% as Global Bond Sell-Off Intensifies
UK-France One-In-One-Out Migration Agreement Expires as London Seeks Alternative Measures
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
×