UK exports to the EU surged by 47% during February, up to £11.6bn
The UK economy grew in February as businesses managed to cope with lockdown restrictions better as exports to the European Union recovered as well.
GDP increased by 0.4% following a 2.2% fall in January, according to figures from the Office for National Statistics (ONS).
A representative from the ONS commented: “Wholesalers and retailers both saw sales pick up a little, while manufacturing improved with car producers experiencing a partial recovery from a poor January. Construction grew strongly.”
Exports to the EU surged by 47% during February, up to £11.6bn, after a 40% drop at the beginning of the year as the Brexit transition unfolded to the detriment of trading levels. Goods coming in from the EU rose by 7.3% having fallen by 29.7% in January.
However, exports are expected to remain below 2020 levels while the economy is nearly 8% below its level prior to the pandemic.
The country took a beating from the coronavirus pandemic as the economy shrank by 9.8%, the biggest fall in more than three centuries and one of the most severe in Europe.
Commenting on UK GDP rising 0.4%, Douglas Grant, director of Conister, part of AIM-listed Manx Financial Group, said:
“The modest rise in GDP is a positive step towards showing signs of the early stages of an economic recovery. While the unemployment rate remains low, much of the country is reopened and vaccinations are administered extensively across the land, the economy has been like a coiled spring as lenders flush with liquidity in a low-yield environment prepare to deploy capital to support resilient business sectors.”
“Lenders and agile, resilient companies alike have been awaiting a directive on which sectors remain a Government priority and the introduction of a new recovery loan scheme (RLS) will provide the necessary catalyst many sectors need to living off an ever-increasing debt pile.”
The UK’s recovery is set to be quicker than anticipated over the next two years as the global economy rebounds from its worst recession since World War 2.
The International Monetary Fund (IMF) is forecasting that the UK economy would grow by 5.3% in 2021 and 5.1% the following year, which would be its fastest rate of growth since 1988. A year ago the UK economy shrank by 9.8%, the most severe recession since 1709.
