Real GDP measures output after adjusting for the impact of inflation, and it shows the UK lagging behind international peers.
However, nominal GDP records the countrys cash output before adjusting for price moves, and it tells a different story: by this yardstick, the UKs recovery is largely in line with that of the US, Germany and France.
Pickering says statistical factors that may be partly specific to the UK appear to be playing a significant role in the headline figures.
As the ONS says, international comparisons should be made with care. This is because the ONSs way of measuring output from health and education two sectors with output still well below pre-virus level is different to other countries and could be a factor in exaggerating the decline.
Unlike most other countries, real government expenditure is derived from the usage of public services, explains Samuel Tombs, economist at Pantheon Macro. As a result, this large shortfall reflects hospitals treating fewer patients than usual and schools staying shut until September.
However, he argues that this distortion is not behind the UKs weakness and instead highlights a lack of recovery in household consumption compared to other countries.
Economic figures are also prone to big revisions once better data is available. David Camerons government was pilloried for the UK suffering an infamous double dip recession in 2012. However, statisticians later rewrote history by revising their figures to show the economy escaped another recession after the financial crisis.read more
Is the UK’s recovery really lagging other countries? – Telegraph.co.uk
