The latest release of annual estimates by the UK’s Office for National Statistics reveals that the country’s net capital stock experienced a 1.6% growth in 2022, reaching an estimated £4.8 trillion. This growth rate, although faster than the 1.0% observed in the previous year, remains slightly below the pre-coronavirus (COVID-19) pandemic rate of 1.7% in 2019.
Key Highlights:
- Growth in Specific Sectors:
- Other Buildings and Structures: Grew by 1.5% in 2022, contributing 36.4% to the net capital stock growth.
- Dwellings: Increased from 1.2% in 2021 to 1.7% in 2022, accounting for 41.6% of the net capital stock growth.
- Machinery, Equipment, and Weapons Systems: Experienced growth of 1.9% in 2022, contributing 15.6% to the net capital stock growth. Growth in the previous two years was negative.
- Total Net Capital Stock Growth:
- The UK’s net capital stock grew to an estimated £4.8 trillion, marking a 1.6% increase between 2021 and 2022.
- Contributions to growth in net capital stock were made by assets such as dwellings, other buildings and structures, cultivated assets, intellectual property products, machinery, equipment, and weapons.
- Contribution of Machinery, Equipment, and Weapons Systems:
- Net capital stocks in this category grew by 1.3% in 2022, amounting to £499 billion in constant prices.
- Transport, accounting for 85% of total growth in machinery, equipment, and weapon systems, experienced positive growth, contrasting with negative growth in the preceding two years.
- Dwellings Investment:
- Dwellings continued to be the primary contributor to net capital stock growth, with a 0.7 percentage point increase in 2022.
- Investment in dwellings grew at a faster rate than capital consumption, resulting in increased net capital stocks.
- Digital Presentation:
- The report includes charts illustrating the contributions to growth in net capital stock by asset and industry, offering a visual representation of the data.
Despite the challenges posed by the COVID-19 pandemic, the growth in net capital stock across various sectors reflects resilience and recovery in the UK economy. The data highlights the importance of investment and capital development in supporting economic expansion.