Aldi contributed £8.5bn to the UK’s economy last year.

The figure represents 0.5% of the UK’s total gross domestic product in 2016, according to a new report by the Centre for Economics and Business Research (CEBR).

It found the discounter’s minimum pay of £8.53 an hour was the highest when compared with its rivals.

“For the first time, this report demonstrates how the positive impact of Aldi’s low-priced, high-quality products stretches beyond our stores. Our approach to sourcing as local as possible means that shoppers are able to enjoy the best value products, with the confidence that they’re supporting British companies and jobs,” said Aldi UK and Ireland CEO Matthew Barnes.

Britain’s fifth-largest supermarket paid £1.6bn in tax in 2016, the equivalent of about 57,000 nurses.

The report predicts the discount supermarket’s contribution will grow to £11.5bn by 2022 as the chain reaches its target of 1,000 UK stores.

It said Aldi’s growth over the next five years would provide a £2.2bn boost for British businesses, as its gross value added (GVA) of its UK supply relationships increases to £6.7bn.

CEBR said the increase was a direct result of Aldi sourcing products manufactured or grown in Britain “whenever possible”.

Last year, the supermarket worked with more than 1,000 UK businesses and generated 77% of its sales from products sourced through UK suppliers.

CEBR director and principal author of the report Oliver Hogan said: “Aldi’s GVA contribution of £100 generating an additional £720 is impressive, yet logical when you take time to consider the retailer’s extensive links with the wider domestic and export economy. This is driven by the efficiency and flexibility of Aldi’s business model, which is set to continue to meet the cost and competitive pressures of the grocery market. Ultimately, this will help the supermarket to sustain growth and drive prosperity for the wider economy as Aldi’s supply chain is so heavily British-based.”

Since 2005, Aldi has invested £3.2bn in 726 UK stores and nine distribution centres.

“We continue to invest in expanding our store network and our supply chain, as well as smart ways of working that reduce waste and drive efficiencies,” added Barnes.

“As well as providing people with sizable savings on their weekly shopping, this will help further multiply the value of how much every £1 they spend in Aldi delivers for the UK economy.”

Aldi grew sales by 17.2% in the 12 weeks to 13 August 2017 and now holds a 7% share of the grocery market, according to Kantar Worldpanel figures.