London Daily

Focus on the big picture.
Thursday, Jan 22, 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 Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
Will AI Finally Make Blue-Collar Workers Rich—or Is This Just Elite Tech Spin?
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
AI vs Work: The Battle Over Who Controls the Future of Labor
Buying an Ally’s Territory: Strategic Genius or Geopolitical Breakdown?
AI Everywhere: Power, Money, War, and the Race to Control the Future
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Arctic Power Grab: Security Chessboard or Climate Crime Scene?
Starmer Steps Back from Trump’s ‘Board of Peace’ Amid Strained US–UK Relations
Prince Harry’s Lawyer Tells UK Court Daily Mail Was Complicit in Unlawful Privacy Invasions
UK Government Approves China’s ‘Mega Embassy’ in London Amid Debate Over Security and Diplomacy
Trump Cites UK’s Chagos Islands Sovereignty Shift as Justification for Pursuing Greenland Acquisition
UK Government Weighs Australia-Style Social Media Ban for Under-Sixteens Amid Rising Concern Over Online Harm
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
×