United Kingdom | Data confirms modest hit from Omicron

The net economic effect of Omicron – a blow to social consumption but a boost to health output from testing and vaccinations – resulted in only a modest 0.2% fall in GDP in December.

What you will learn:

Retail and hospitality, two parts of the economy particularly exposed to greater consumer hesitancy in the face of rising infections, made the biggest contributions to the drop in GDP.
Timelier high-frequency data have pointed to social consumption activity rebounding in recent weeks.
But as one headwind recedes, growing cost of living pressures will weigh on growth this year.

Topics: United Kingdom, Europe, Economic outlook, Inflation, London, Vaccines, Government, Scotland, Outlook, England, Policy