The UK economy contracted in the first quarter of 2021 as nationwide closure measures have weighed on economic activity in the country.
According to preliminary estimates reported by the Office for National Statistics (ONS), the UK’s Gross Domestic Product (GDP) contracted by 1.5% in the first quarter due to a sharp contraction in January when new closures were imposed to curb the spread of the epidemic.
Even so, pound currency trading was seen as unimpressed by the figure, following encouraging growth readings recorded in March.
Economic growth regained momentum in March with a stronger -than -expected increase of 2.1% compared to the revised 0.7% increase in February.
This increase indicates a faster level of recovery in the UK economy after being supported by advances in vaccination programs in the country.
With sanctions measures to be gradually eased, the UK is expected to experience a sharp recovery this year.
At the time of writing, the pound sterling continues to trade strong around the 1.41300 price level against the US dollar.
