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As virus lockdown eases, the British economy strengthens in April

Princess Tarfa

The British economy accelerated in April as the government eased its coronavirus lockdown, according to official statistics released on Friday, with finance minister Rishi Sunak warily applauding the 2.3 % growth number as the Delta form spreads.

The Office for National Statistics (ONS) stated in a statement that it's the quickest monthly performance for UK gross domestic product since July last year, "as government limitations influencing economic activity continued to loosen."

The British economy shrank by 1.5% in the first quarter but it had already started to improve significantly in March, with a GDP of 2.1%.

The UK's total output for April is still 3.7% lower than pre-pandemic levels reported in February of last year.

“Overall, the economic growth accelerated in April, and GDP is on course to return to February levels towards the end of the year,” said Thomas Pugh, UK economist at Capital Economics research firm.

“Anything the economy may be able to return to pre-crisis levels much quicker.” The service sector drove April's growth, which increased by 3.4% as consumers resumed their visits to non-essential physical businesses, restaurants, and bars, but as more students returned to onsite classes, according to the ONS.

However, output in the manufacturing sector fell 1.3% in the same month, the first dip since January. Following a robust March, the construction industry shrank by 2.0%.

Since May, the government has relaxed far more regulations, allowing people to dine and drink inside restaurants and bars after previously only being able to sit outdoors.

“Today's statistics are a hopeful indicator as our economy is starting to rebuild,” stated Chancellor of the Exchequer Sunak.

His measured approach comes in the wake of growing worries that the discovery of the Delta version of the coronavirus would jeopardize the UK government's temporary June 21 deadline for additional virus restrictions. According to Public Health England data, the Delta variation, which initially originated in India, is currently the dominant strain in the UK.

According to the UK authorities, it is 60% more transmissible in families than the variety that led the country to shut down in January. On Thursday, the United Kingdom announced that G7 leaders will commit to increasing global Covid vaccine manufacture to supply at least one billion shots to the world through sharing and financing initiatives.

The UK, which was hosting the meeting of the world's major nations in southwest England, stated that it will provide at least 100 million extra doses over the following year, with five million starting in the upcoming weeks.

The news came after the US announced a donation of 500 million vaccines to 92 low- and lower-middle-income countries.

Separate statistics released Friday revealed that UK exports declined 0.6% in April following two months of increase, with decreases to non-EU countries balancing rises to EU nations, according to the Office for National Statistics.

According to Samuel Tombs, chief UK economist at Pantheon Macroeconomics, although exports to the EU increased by 2.3% month on month, they stayed 9.0% just below the average level for 2019, or ahead of Britain's official withdrawal from the European Union also at beginning of this year.

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