UK’s economy in March grows at fastest monthly gain since last August

The UK economy grew 2.1% in March, its fastest monthly increase since last August

Motion blurred crowd of people walking on busy high street                                 

The UK economy picked up pace in March as lockdown restrictions started to ease, according to official figures.

It comes as the economy was down by 1.5% in the first three months of 2021, as the nation faced its third lockdown, the Office for National Statistics (ONS) said.

Economy picks up

The reopening of schools and increase in retail spending helped the economy grow 2.1% in March, its fastest monthly growth since last August.

But the economy is still 8.7% smaller than it was before the pandemic.

Finance Minister Rishi Sunak told the BBC the economy was “getting back on track”.

“Despite a difficult start to this year, economic growth in March is a promising sign of Googlethings to come,” he said.

Earlier this month, the Bank of England said it expected the UK economy to enjoy a growth of 7.25% this year, its highest in more than 70 years, as restrictions are lifted and more people are vaccinated under Europe’s fastest vaccination programme. 

Still slowest amidst G7

But Pantheon Macroeconomics economist Samuel Tombs said that the UK's economic growth was still the slowest of the Group of Seven (G7) rich countries, for the fourth quarter in a row.

Tombs said GDP looked on course to grow by 5% between April and June, "which should mean that the UK finally hands over the wooden spoon to another G7 economy".

The Bank of England expects the UK’s economy will be back to its pre-pandemic size by the end of this year.

Further reopening of economy 

 

Prime Minister Boris Johnson gave the go-ahead for non-essential shops and outdoor hospitality to reopen in April in England and there have been signs that the economy grew in response.

Further relaxations are due to take place on 17 May, before all remaining restrictions are lifted in late June.

The ONS data showed Britain’s dominant services industry grew by 1.9% in March from February, its strongest growth since last August. 

FURTHER READING: Pound rallies to highest level since February

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image