Britains recovery from the pandemic positions us ahead of competitors

It was perhaps inevitable the huge disruption of Covid-19 would take time to be fully understood and reflected in economic data.

The revision to the official tally for growth shows that businesses fared better in 2021, the year following lockdowns, than we thought.

The change means we are no longer trailing the other major European economies, notably France and Germany.

READ MORE Andrew Neil says UK economy has trounced France and Germany since Covid

We are in the middle of the pack for economies and have been left behind by the US, which has outperformed Europe by a wide margin.

Better growth in the UK helps explain why we have seen more persistent inflation here.

Despite 15 successive interest rate rises, demand has been stronger than the Bank of England expected and the jobs market and wage growth has proved resilient.

We need growth to slow and for inflation to fall before interest rates can begin to come down again and provide some relief for borrowers.

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The next 12 months are likely to see growth slow even more and may bring recession, although the UK has repeatedly defied the worst predictions, with growth figures that have beaten expectations.

This week’s positive revision to GDP growth adds to that trend.

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