UK is only G7 country with smaller economy than before Covid-19

[muriel_volestrangler]

A weaker than expected recovery from the coronavirus pandemic has left the UK as the only G7 country with a smaller economy than in early 2020, according to official figures likely to further undermine the government’s tax-cutting measures.

Before the prime minister and chancellor’s meeting with the head of the government’s independent forecaster on Friday morning, the Office for National Statistics (ONS) released figures showing that rather than the economy being 0.6% larger than in February 2020, a combination of a deeper recession during the pandemic and a weak recovery had left it 0.2% smaller.
...
Analysts said Richard Hughes, the head of the Treasury’s independent forecaster, the Office for Budget Responsibility, would be forced by the new figures to take a tough stance on assessing the impact of further borrowing on the public finances.

All the other major economies in the G7, including France and Italy, recovered strongly enough to be larger than they were in February 2020.

https://www.theguardian.com/business/2022/sep/30/uk-is-only-g7-country-with-smaller-economy-than-before-covid-19

US 2.6%
Canada 1.7%
Italy 1.1%
France 0.9%
Japan 0.6%
Germany 0%
UK -0.2%

And after that, the Tories have tanked the economy - house price slump predicted, emergency Bank of England action to prevent pension fund failures, widespread predictions they will now cut public spending to pay for the tax cuts for the rich ...

[House of Roberts]

1. How are they comparing 'Real GDP' before the pandemic

with 'Real GDP' after the pandemic? Isn't GDP the sum of the prices obtained for the goods produced, and wouldn't the inflation increase the total? So we could be producing less, but paying more, in total?

[muriel_volestrangler]

4. GDP is calculated with a "deflator", which allows for inflation; this is the real GDP figure

which is what is normally used.

The level of real GDP is now estimated to be 0.2% below where it was pre-coronavirus at Quarter 4 (Oct to Dec) 2019, downwardly revised from previous estimates of 0.6% above.

The implied GDP deflator rose by 5.2% in the year to Quarter 2 2022, primarily driven by an 8.2% increase in the implied price of household consumption; there was a 6.0% rise in the implied price of imports, including the effects of higher gas prices over the quarter.

https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/quarterlynationalaccounts/apriltojune2022

[House of Roberts]

6. If that is true, as I suppose it is,

we are really getting screwed when we buy things now. The reason being that there is no shortage of products, but the prices haven't returned to pre-pandemic levels.

[IbogaProject]

2. "Real" might mean inflation adjusted

I'm not sure what the measure of equal consumption, production would be.

[LiberalFighter]

3. Because of Brexit?

[muriel_volestrangler]

5. Because of a moronic doomsday cult in charge

See https://www.democraticunderground.com/?com=view_post&forum=1088&pid=21974