Kate Andrews Kate Andrews

When will the economy recover to pre-pandemic levels?

(Photo by Niklas Halle'n/AFP via Getty Images)

New growth figures were released this morning show that the economy contracted 1.5 per cent in Q1 this year and remains 8.7 per cent smaller than it was in Q4 2019 (the last quarter not to be impacted by the pandemic). Alongside this update, the Office for National Statistics also released its latest set of monthly figures, which saw GDP rise by 2.1 per cent in March — the biggest boost since August last year — taking the economy to 5.9 per cent below pre-pandemic levels.

That GDP fell by just 1.5 per cent overall once again illustrates the extent to which businesses have developed a resilience to lockdowns. The first quarter of this year saw much economic activity either wildly distorted or banned outright. 

Compare this dip with the first lockdown: in spring last year, Q2 saw the economy contract a staggering 19.5

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