“Today’s data were encouraging. Although the economy shrank in the first quarter, the decline in GDP was less than most had expected and growth bounced back in March. There was also further evidence of a recovery in UK trade with the EU (especially exports) after the rocky start in January.
“With more restrictions now being lifted and business surveys continuing to improve, activity is on track to return to pre-Covid levels as soon as the third quarter of this year.
“Policy now needs to adjust. Any additional stimulus – whether through government spending or money printing – is increasingly likely to distort the economy and fuel inflation, rather than boost growth.”
Notes to Editors
Contact: Emily Carver, Head of Media, 07715942731
IEA spokespeople are available for further comment.