Exports to the UK to the EU skyrocketed by 47% during February, up to £11.6 billion
The UK economy grew in February as exports to the European Union also recovered, allowing businesses to deal with lockdown restrictions.
According to National Bureau of Statistics (ONS) figures, GDP rose 0.4% after a 2.2% decline in January.
An ONS representative commented: “Wholesalers and retailers both saw sales rise slightly, but manufacturing improved with car producers experiencing a partial recovery from the poor in January. Construction grew strongly. .”
Exports to the EU skyrocketed 47% in February, up to £11.6 billion after a 40% decline at the beginning of the year as Brexit transition rolled out to undermine trading levels. Products coming in from the EU increased by 7.3%, down 29.7% in January.
However, exports are expected to fall below 2020 levels, while the economy is nearly 8% below pre-pandemic levels.
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It took a bet from the coronavirus pandemic as the economy shrank 9.8%.
Commenting on the 0.4% rise in UK GDP, Douglas Grant, director of Conister, part of AIM-registered Manx Financial Group, said:
“A modest rise in GDP is a positive step to show signs of an early stage of economic recovery. Unemployment remains low, but most of the country has been reopened and vaccinations are widely managed across the land. But the economy was like a coiled spring as lenders were preparing to flush with liquidity in a low-wage environment and deploy capital to support the resilient business sector.
“Lenders and agile and resilient companies are waiting for an order for the sector to remain a government priority, and with the introduction of a new recovery loan scheme (RLS), many sectors will live from the ever-growing mountain of debt. It provides the necessary catalysts to do so.”
The UK’s recovery is set to be faster than expected over the next two years as the world economy recovers from its worst recession since World War II.
The International Monetary Fund (IMF) forecasts that the UK economy will increase by 5.3% in 2021 and 5.1% the following year. This is the fastest growth rate since 1988. The most severe recession since 1709.
