Bounce back Britain: UK economy grew by 2.3% in April in highest monthly rise since last July after shoppers hit High Streets and pubs reopened as Covid restrictions eased
- Shoppers hit the British high streets and pubs as coronavirus restrictions eased
- UK economy grew by 2.3 per cent in April in highest monthly rise since July
- Despite surge, the UK economy is still 3.7 per cent below its pre-pandemic peak
The UK economy has grown by 2.3 per cent in April in the highest monthly rise since last July.
It comes after shoppers hit the British high streets and pubs as coronavirus restrictions were eased in recent weeks.
Despite the surge, the UK economy is still 3.7 per cent below its pre-pandemic peak.
Chancellor Rishi Sunak said the figures were ‘a promising sign that our economy is beginning to recover’.
Miatta Nema Fahnbulleh, Chief Executive of New Economics Foundation, told BBC Radio 4 the economy is bouncing back in a similar way to the last time restrictions were eased.
She added: ‘The numbers are consistent with what we saw in March, which was a big bounce as the restrictions start to be eased and the economy goes back to normal. We’re likely to see this for the next few months over the summer as more and more restrictions are removed.
‘Underneath this is a story of two halves. The numbers tell us the economy is recovering but it is uneven, with bounceback being driven by parts of the economy that are essentially being insulated by the worst paid of the pandemic.
‘Small and medium enterprises will really be struggling as the Government starts removing some of the restrictions going into the autumn.’
She said the pandemic has ‘thrown lots of curveballs’ so it will be a ‘choppy picture’ later this year.
‘You might see a short-term hike but the underlining fundamentals are low so inflation is not a thing we need to worry about,’ she added.
Some 21million Britons, almost a third of the population, will be ‘struggling to get by’, she said. ‘That has to be the focus of both Government policy and what we think about the recovery’.
More to follow.
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