Washington, District of Columbia 2021-05-12 03:25:34 –
London (AP) —Official figures show that the UK economy shrank 1.5% in the first quarter of 2021.
London (AP) — Official figures show that the UK economy shrank 1.5% in the first quarter of 2021. This is a relatively mild reduction given that it is in the midst of a tight blockade to fight the second wave of coronavirus.
The National Bureau of Statistics also said Wednesday that the economy could even grow 2.1% in March when the country began to relax some restrictions.
Overall first-quarter figures provide further evidence that businesses and consumers have adapted to blockade constraints by increasing their online activity. In the second quarter of 2020, when the first blockade took place, the UK economy shrank by a factor of five.
The agency said the strong recovery seen in March was driven by the return of the retail sector and schools. The construction and manufacturing sectors were also strong, and companies continued to adapt to the pandemic.
Treasury Secretary Rishi Sunak said the March performance was “a promising sign for the future.”
Statistics Bureau also said exports of goods to the European Union increased in March, almost returning to the state of December last month when the UK was part of the European Single Market and Customs Union. The new free trade agreement between the UK and the EU after Brexit came into force in early 2021 and led to trade turmoil that the British government said represented an early tooth-bearing problem.
Imports from Europe remained sluggish during the first three months of the year, surpassing non-EU imports for the first time on record.
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UK economy shrinks by only 1.5% in Q1 despite lockdown Source link UK economy shrinks by only 1.5% in Q1 despite lockdown