Kate Andrews Kate Andrews

Is the UK taking advantage of its vaccine success?

Photo by Luke Dray/Getty Images

UK GDP ever so slightly edged up in February, growing 0.4 per cent according to today’s update from the Office for National Statistics. No surprises here: there were no changes to lockdown restrictions between January and February, which gave the economy little room for manoeuvre.

The ONS has revised January’s GDP fall from 2.9 to 2.2 per cent: still a contraction, but another good indicator that businesses have significantly adapted to lockdown rules, which has meant that this winter’s lockdown didn’t plunge GDP down to record levels as it did last spring. Still, February serves as another reminder that – despite spectacular market innovation – there is a ceiling on the extent to which the economy can recover while significant economic activity remains barred.

Economists are expecting March’s figures – when schools returned and slightly more socialising was allowed – to show an improvement, and to continue to head uphill from there.

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