UK economy shrank by 1.5% as third lockdown took its toll

Non-essential businesses were ordered to close their doors in early January (Picture: Getty Images)

The UK’s locked-down economy contracted by 1.5% in the first quarter of 2021, official figures show.

As the country suffered a surge of coronavirus cases over the winter, a number of businesses were ordered to close their doors in early January while people were told to ‘stay at home’

But despite England’s third national lockdown, the economy bounced back with growth of 2.1% in March the Office for National Statistics has said.

However, the economy is now 8.7% smaller than it was before the coronavirus pandemic.

ONS director of economic statistics Darren Morgan said: ‘The strong recovery seen in March, led by retail and the return of schools, was not enough to prevent the UK economy contracting over the first quarter as a whole, with the lockdown affecting much of the services sector.

‘However, construction grew strongly over the quarter and, in March, was above its pre-pandemic level.

Lockdown measures have been particularly tough for the UK’s hospitality sector (Picture: Getty Images)

‘Manufacturing also recovered from an initial fall, increasing strongly in February and March, as businesses continued to adapt and make themselves Covid-19 secure.

‘Exports of goods to the EU continued to increase in March and are now almost back to their December level.

‘However, imports from Europe remain sluggish in the first three months of the year, being outstripped by non-EU imports for the first time on record.’

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from metro.co.uk