In April 2021, the British economy recorded a record pace of growth. However, the sudden downturn in industrial production shows that not everything is on the right track yet.
Compared to March, the GDP of Great Britain, the second largest economy in Europe after Germany, increased by 2.3% in April. It is the most dramatic change in nine months. In annual terms, the dynamics of GDP amounted to as much as 27.6%. And set a new record. In the first case, the reading turned out to be consistent with the expectations of economists, and in the second, it was slightly lower (the assumed value was 27.8%). However, in both cases, the results were much higher than in the previous month, when they were 2.1 and 1.4 percent, respectively.
The opening of new industries and the systematic normalization of the situation in foreign trade after the exit of the United Kingdom had a significant share in the new record. Britain is one of the structures of the European Union.
However, the sudden drop in industrial production could be concerning. In April, it unexpectedly fell 1.3 percent. On a monthly basis, the forecast is +1.2%. And an increase of 1.8 percent. in March. This is mainly due to factory closures and reduced mining and quarrying activity.
On the other hand, the situation in services, which accounts for the largest share of GDP generation, is starting to look optimistic again. Services grew 3.4%, nearly double the previous month’s figure, thanks to a surge in retail sales.