Shrinkage of the British Economy in the First Quarter is Not Too Bad

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Ultimately, the UK economy did not receive a hit from the corona crisis in the first quarter as was widely feared. March saw quite strong growth again compared to the previous month.

 

In doing so, the United Kingdom benefited from the fact that some corona measures could already be relaxed at the end of that month. It also went a bit better with the construction.

Viewed over the entire first quarter, the British economy contracted by 1.5 percent. The British statistics office also released new monthly figures. In March, the economy picked up by 2.1 percent, exceeding the expectations of economists.

“Despite a difficult start to this year, economic growth in March is a promising sign,” said UK Chancellor of the Exchequer, Rishi Sunak. “While we are cautiously reopening the economy, I will continue to take all necessary steps to support our recovery.”

The British central bank recently said it expects the world’s fifth-largest economy to likely recover quickly. Last year, Britain’s gross domestic product (GDP) plummeted by nearly 10 percent, the most substantial decline in more than three centuries.

This made the United Kingdom one of the hardest-hit countries in Europe. For this year, however, the Bank of England is expecting more than 7 percent growth. That would be the most substantial growth since World War II.

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