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In Q2 2021, Eurozone GDP increased by 2.0% compared with the previous quarter (Q1 2021), as pandemic restrictions were eased. Meanwhile, GDP grew by 1.6% in the US. UK GDP data for Q2 2021 will be published on 12 August.

Compared to pre-pandemic levels, GDP in Q1 2021 (the most recent quarter where all G7 countries have data) was 8.8% lower in the UK and 5.1% lower in the Eurozone.

GDP in Q1 2021 compared with pre-pandemic level of Q4 2019 for all G7 countries

Please note that headline GDP growth figures across countries are not 100% comparable. For example, the UK takes a different approach than its peers in calculating output in the education and health sectors. This has resulted in the UK’s GDP growth figures during the Covid-19 outbreak to be lower compared with other G7 economies than they otherwise would have been (this effect will unwind during the recovery).

Forecasts

In its latest report on the global economy, published 27 July, the IMF raised its forecasts for UK GDP growth to +7.0% in 2021, up from 5.3% at its previous April forecast. US GDP growth in 2021 is also forecast to be 7.0%, boosted by large-scale fiscal support, while the Eurozone is forecast to expand by 4.6%.

IMF GDP growth forecasts for G7 in 2021

The OECD’s latest forecasts, published 31 May, projected an improved world growth outlook compared with its March projections. It forecast UK GDP growth of +7.2% in 2021 (up from its previous forecast of 5.1%) following -9.8% in 2020.

OECD forecasts for G7 GDP growth in 2021 


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