Britain's&nbsp;economy&nbsp;grew by a record 7.5 percent last year on easing Covid curbs after a pandemic-driven collapse, official data showed Friday, but analysts warned that sky-high inflation clouds the 2022 outlook.

The expansion, which was the fastest since records began in 1948, followed a record 9.4-percent slump in 2020, the Office for National Statistics (ONS) added in a statement.

Economies across the world were slammed in 2020 by the deadly pandemic, which sparked lockdowns and other public health restrictions that have since been largely removed.

Also read |&nbsp;<a href="https://www.wionews.com/world/africa-transitioning-from-pandemic-will-have-to-manage-virus-who-452312">Africa transitioning from pandemic, will have to 'manage' virus: WHO</a>

The ONS added Friday that the&nbsp;UK&nbsp;economy&nbsp;increased by 1.0 percent in the fourth quarter despite the emergence of the Omicron Covid variant, matching its expansion in the third quarter.

December hit by Omicron&nbsp;

However, gross domestic product dipped 0.2 percent in December on fallout from the rapid spread of Omicron -- which is widely regarded as less dangerous than previous variants but hit the travel sector.

"GDP fell back slightly in December as the Omicron wave hit, with retail and hospitality seeing the biggest impacts," said ONS director of economic statistics Darren Morgan.

"However, these were partially offset by increases in the Test and Trace service and vaccination programmes.

"Despite December's setback, GDP grew robustly across the fourth quarter as a whole with the NHS (National Health Service), couriers and employment agencies all helping to support the&nbsp;economy," added Morgan.

Also read |<a href="https://www.wionews.com/world/string-of-controversies-trigger-london-police-head-cressida-dicks-resignation-452267">&nbsp;String of controversies trigger London police head Cressida Dick’s resignation</a>

December activity held at its February 2020 level, before Covid struck.

Yet the fourth quarter of 2021 was slightly below that of the same period in 2019.

&nbsp;'Remarkably resilient'&nbsp;

British finance minister Rishi Sunak welcomed the data.

"The&nbsp;economy&nbsp;has been remarkably resilient; with the&nbsp;UK&nbsp;seeing the fastest growth in the G7 last year," he said in a statement, noting it was boosted by the government's vast stimulus measures and speedy vaccination drive.

"I'm proud of the resolve the whole country has demonstrated, and proud of our incredible vaccine programme which has allowed the&nbsp;economy&nbsp;to stay open."

The&nbsp;UK&nbsp;government is plotting the nation's full emergence from the long-running health emergency.&nbsp;

England will scrap the legal requirement to self-isolate after testing positive for COVID-19 later this month if infection levels remain stable, Prime Minister Boris Johnson unexpectedly announced Wednesday.

The proposed move would be one of the most dramatic easings of coronavirus rules taken by any country so far in the pandemic, as Johnson doubles down on a strategy of trying to "live with Covid".

England in late January lifted almost all remaining Covid restrictions that had been reimposed in early December to tackle Omicron.

Watch |&nbsp;&nbsp;Former UK PM John Major calls Boris Johnson govt's actions 'shameful'

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/former-uk-pm-john-major-calls-boris-johnson-govts-actions-shameful-452270/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

<div class="videoWrapper trancodeVideo">&nbsp;</div>

Cost of living crisis&nbsp;

Despite Friday's bright data, economists warn the&nbsp;UK&nbsp;outlook is darkened by a cost of living crisis that has been fuelled by rocketing domestic energy costs.

Economies worldwide are battling decades-high inflation that is forcing central banks to lift interest rates, including the Bank of England, which this month raised its key borrowing cost for the second time in a row.

Britain is experiencing the highest rate of annual inflation in nearly 30 years, while the cost of living is set to soar further from April owing to a tax hike on&nbsp;UK&nbsp;workers and businesses plus increases in energy bills.

"While the downside risks from Omicron have receded, the recovery now faces the more conventional economic challenge of high inflation," said EY ITEM Club economist Martin Beck.

"Consumers (are) facing the biggest squeeze on spending power in more than a decade," he added.

UK&nbsp;annual inflation struck 5.4 per cent in December, stoking fears of a cost-of-living squeeze as wages fail to keep pace.

The BoE this month hiked interest rates to 0.50 per cent -- and forecast inflation would peak at 7.25 per cent in April.

Britain's economy grew by a record 7.5 percent last year on easing Covid curbs after a pandemic-driven collapse, official data showed Friday, but analysts warned that sky-high inflation clouds the 2022 outlook.

Britain's economy grew by a record 7.5 percent last year on easing Covid curbs after a pandemic-driven collapse, official data showed Friday, but analysts warned that sky-high inflation clouds the 2022 outlook. The expansion, which was the fastest since records began in 1948, followed a record 9.4-percent slump in 2020, the Office for National Statistics (ONS) added in a statement. Economies across the world were slammed in 2020 by the deadly pandemic, which sparked lockdowns and other public health restrictions that have since been largely removed. Also read | Africa transitioning from pandemic, will have to 'manage' virus: WHO The ONS added Friday that the UK economy increased by 1.0 percent in the fourth quarter despite the emergence of the Omicron Covid variant, matching its expansion in the third quarter. December hit by Omicron However, gross domestic product dipped 0.2 percent in December on fallout from the rapid spread of Omicron -- which is widely regarded as less dangerous than previous variants but hit the travel sector. "GDP fell back slightly in December as the Omicron wave hit, with retail and hospitality seeing the biggest impacts," said ONS director of economic statistics Darren Morgan. "However, these were partially offset by increases in the Test and Trace service and vaccination programmes. "Despite December's setback, GDP grew robustly across the fourth quarter as a whole with the NHS (National Health Service), couriers and employment agencies all helping to support the economy," added Morgan. Also read | String of controversies trigger London police head Cressida Dick’s resignation December activity held at its February 2020 level, before Covid struck. Yet the fourth quarter of 2021 was slightly below that of the same period in 2019. 'Remarkably resilient' British finance minister Rishi Sunak welcomed the data. "The economy has been remarkably resilient; with the UK seeing the fastest growth in the G7 last year," he said in a statement, noting it was boosted by the government's vast stimulus measures and speedy vaccination drive. "I'm proud of the resolve the whole country has demonstrated, and proud of our incredible vaccine programme which has allowed the economy to stay open." The UK government is plotting the nation's full emergence from the long-running health emergency. England will scrap the legal requirement to self-isolate after testing positive for COVID-19 later this month if infection levels remain stable, Prime Minister Boris Johnson unexpectedly announced Wednesday. The proposed move would be one of the most dramatic easings of coronavirus rules taken by any country so far in the pandemic, as Johnson doubles down on a strategy of trying to "live with Covid". England in late January lifted almost all remaining Covid restrictions that had been reimposed in early December to tackle Omicron. Watch | Former UK PM John Major calls Boris Johnson govt's actions 'shameful' Cost of living crisis Despite Friday's bright data, economists warn the UK outlook is darkened by a cost of living crisis that has been fuelled by rocketing domestic energy costs. Economies worldwide are battling decades-high inflation that is forcing central banks to lift interest rates, including the Bank of England, which this month raised its key borrowing cost for the second time in a row. Britain is experiencing the highest rate of annual inflation in nearly 30 years, while the cost of living is set to soar further from April owing to a tax hike on UK workers and businesses plus increases in energy bills. "While the downside risks from Omicron have receded, the recovery now faces the more conventional economic challenge of high inflation," said EY ITEM Club economist Martin Beck. "Consumers (are) facing the biggest squeeze on spending power in more than a decade," he added. UK annual inflation struck 5.4 per cent in December, stoking fears of a cost-of-living squeeze as wages fail to keep pace. The BoE this month hiked interest rates to 0.50 per cent -- and forecast inflation would peak at 7.25 per cent in April.

UK economy rebounds by record 7.5% from pandemic in 2021

A report published on Monday shows that the world's largest weapons manufacturers avoided the economic downturn resulting from COVID-19 and had profits rise for the sixth time in a row last year.

This is because governments have continued to buy weapons during the pandemic, and some countries also took measures to help their big weapons manufacturers, according to the Stockholm International Peace Research Institute (SIPRI).

Also read |&nbsp;<a href="https://www.wionews.com/world/next-outbreak-could-be-worse-warns-oxford-vaccine-maker-434489" hreflang="en">Next outbreak could be worse, warns Oxford vaccine maker</a>

As a whole, the 100 largest weapons firms saw their profits increase by 1.3 per cent to $531 billion in 2019, despite the global economy contracting by more than three per cent.

"Military manufacturers were largely shielded by sustained government demand for military goods and services," said SIPRI researcher Alexandra Marksteiner in the institute's annual assessment of arms companies.

"In much of the world, military spending grew and some governments even accelerated payments to the arms industry in order to mitigate the impact of the COVID-19 crisis."

With 58.2 billion dollars in sales, Lockheed Martin, the maker of F-35 fighter jets and various types of missiles, maintained its first place with sales of $58.2 billion.

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BAE Systems, in sixth place, was the highest-ranking European company, ahead of three Chinese companies.

China on the rise 
"The rise of China as a major arms producer has been driven by its aim to become more self-reliant in weapons production and by the implementation of ambitious modernisation programmes," the report said.

Even though China has increased its arms sales, they still trail US and British firms. In 2020, Chinese firms will account for 13 per cent of the top 100 arms sales.

A total of $66.8 billion in sales was recorded by the top five Chinese companies in 2020, an increase of 1.5 per cent over the previous year.

Watch |&nbsp;Gravitas: The Pandemic didn't impact Global Arms Industry

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-the-pandemic-didnt-impact-global-arms-industry-435275/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"In recent years, Chinese arms companies have benefited from the country's military modernisation programmes and focus on military–civil fusion," SIPRI senior researcher Nan Tian said.

"They have become some of the most advanced military technology producers in the world."

The only two top-producing countries that saw a decline in arms business last year were France and Russia.

(With inputs from agencies)

A report published on Monday shows that the world's largest weapons manufacturers avoided the economic downturn resulting from COVID-19 and had profits rise for the sixth time in a row last year.

A report published on Monday shows that the world's largest weapons manufacturers avoided the economic downturn resulting from COVID-19 and had profits rise for the sixth time in a row last year. This is because governments have continued to buy weapons during the pandemic, and some countries also took measures to help their big weapons manufacturers, according to the Stockholm International Peace Research Institute (SIPRI). Also read | Next outbreak could be worse, warns Oxford vaccine maker As a whole, the 100 largest weapons firms saw their profits increase by 1.3 per cent to $531 billion in 2019, despite the global economy contracting by more than three per cent. "Military manufacturers were largely shielded by sustained government demand for military goods and services," said SIPRI researcher Alexandra Marksteiner in the institute's annual assessment of arms companies. "In much of the world, military spending grew and some governments even accelerated payments to the arms industry in order to mitigate the impact of the COVID-19 crisis." With 58.2 billion dollars in sales, Lockheed Martin, the maker of F-35 fighter jets and various types of missiles, maintained its first place with sales of $58.2 billion. Also read | French climber pockets $169,000 gems he found in 2013 BAE Systems, in sixth place, was the highest-ranking European company, ahead of three Chinese companies. China on the rise "The rise of China as a major arms producer has been driven by its aim to become more self-reliant in weapons production and by the implementation of ambitious modernisation programmes," the report said. Even though China has increased its arms sales, they still trail US and British firms. In 2020, Chinese firms will account for 13 per cent of the top 100 arms sales. A total of $66.8 billion in sales was recorded by the top five Chinese companies in 2020, an increase of 1.5 per cent over the previous year. Watch | Gravitas: The Pandemic didn't impact Global Arms Industry "In recent years, Chinese arms companies have benefited from the country's military modernisation programmes and focus on military–civil fusion," SIPRI senior researcher Nan Tian said. "They have become some of the most advanced military technology producers in the world." The only two top-producing countries that saw a decline in arms business last year were France and Russia. (With inputs from agencies)

Weapons or medicine? Report shows that even during pandemic, governments helped weapon firms profit

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UK economy rebounds by record 7.5% from pandemic in 2021

Weapons or medicine? Report shows that even during pandemic, governments helped weapon firms profit