Danni Hewson, AJ Bell financial analyst, comments on today’s GDP and trade figures from the ONS.
“Today’s GDP figures for March demonstrate the resilience of the British public. Despite the reopening of schools, the lockdown for many sectors was still very much in place and yet the economy was blossoming. Buoyed by the vaccine rollout houses were being built, cars and motorcycles repaired, and goods being produced in Covid-secure facilities. Recovery with a capital R and this growth has particular significance because it shows how the economy can function if future lockdowns arise.
“That’s further evidenced by the extent of the first quarter contraction, 1.5% is significantly lower than the 4% that had been predicted. There is still a lot of ground to be made up, but March’s figures suggest a quick recovery is within reach.
“Recovery has also been experienced by British exporters. Despite restrictions and red tape, the amount of goods heading into the EU has almost returned to December levels. What is worth attention is the sluggish recovery of imports from the continent and the rising level of goods coming into Britain from non-EU countries. Clearly Europe’s been waging its own battle with Coronavirus so disruption to supply chains is unsurprising. What happens over the next six month will be more illustrative and bears watching.”
