The British economy has grown by 2.3 per cent in April – the highest monthly rise since last July. The bounce back comes after coronavirus restrictions eased in the past few weeks, and people hit the British high streets and pubs. While the upward trend is worth celebrating, it also should be noted that the UK economy is still 3.7 per cent below its pre-pandemic peak.
The Office for National Statistics (ONS) said gross domestic product (GDP) was up 2.3 per cent in April. The figure would have been higher if not for a slowdown in the construction sector compared to strong growth in March. Non-essential retailers drove much of the growth as they welcomed customers back into stores from April 12 in England, with clothes stores seeing a boost of 69.4 per cent.
The services sector saw an overall growth of 3.4 per cent, although it remains 4.1 per cent below pre-pandemic levels of February 2020. This included restaurants, bars and cafes where customers could dine and drink outdoors again. People also helped caravan parks and holiday destinations grow 68.6 per cent, while hairdressers and other personal services grew 63.5 per cent.
Chancellor Rishi Sunak said the figures were “a promising sign that our economy is beginning to recover.” He said, “With more than a million people coming off furlough across March and April and the number of employees in work rising, it is clear that our Plan for Jobs is working. But I know there are people who still need our support, which is why the furlough scheme is in place until September to protect as many jobs as possible.”
Chief Executive of New Economics Foundation, Miatta Nema Fahnbulleh said in a BBC interview that the economy is bouncing back in a similar way to the last time restrictions were eased. She said, “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 bounce-back being driven by parts of the economy that are essentially being insulated by the worst pay of the pandemic.”
