Economy rebounds after first quarter dip

UK GDP declined by 1.5% in the first three months of 2021, but picked up again in March, according to the Office for National Statistics (ONS).

The easing of lockdown restrictions helped GDP increase 2.1% in March, its best performance since last August, although the economy is still 8.7% smaller than it was at the end of 2019, before the coronavirus pandemic. Compared with the same quarter a year ago, the UK economy fell by 6.1%.

There have been contractions in services and production output; however, construction output grew over the quarter. Health was one of the few service sectors that experienced a pickup.

Reacting to the March figures, the TUC's Frances O’Grady said the government should give key workers "the pay rise they have earned. With more money in their pockets, their spending will help businesses recover faster”.

ONS figures also show trade with the EU recovered in the same month, increasing by £1 billion, while imports from non-EU countries outgrew those from EU countries for the first time, at £1.5 billion. Exports of goods to non-EU countries, excluding precious metals, increased by £1.3 billion (9.9%), mainly driven by car exports.

https://www.ons.gov.uk/releases/gdpfirstquarterlyestimateukjanuarytomarch2021timeseries

https://www.tuc.org.uk/news/gdp-government-should-raise-key-worker-pay-help-recovery-gain-speed

https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/uktrade/march2021