Business leaders in Coventry and Warwickshire say there are ‘promising signs’ despite the economy shrinking in the first quarter of the year.
The latest GDP figures showed that the economy fell by 1.5 per cent in the first three months of 2021.
However, the figures for March saw a rise of 2.1 per cent as lockdown restrictions began to ease.
Sean Rose, Policy Officer at the Coventry and Warwickshire Chamber of Commerce, said: “The economy has, undoubtedly, been severely impacted over the past year and there is little surprise that it dipped again in the first quarter of the year because of the restrictions in place due to the lockdown.
“As those have eased, we saw the economy start to rebound in March which shows promising signs and with further lifting in restrictions taking place in line with the Government roadmap, we’d anticipate further growth in the coming months.
“What isn’t clear is just how quickly the economy can return to the level it was at before the pandemic hit and it is crucial that Government continues to nurture the recovery.
“Businesses should contact the Chamber should they need any support to help them grow as restrictions lift further in the coming weeks.”
Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “While the UK economy contracted in the first quarter, the downbeat headline figure masks a renewed momentum through the quarter from January’s drop in output to an exceptionally strong March outturn as lockdown measures started to ease.
“The decline in economic output in the first quarter largely reflected the squeeze on activity from coronavirus restrictions, which was partly offset by growing business resilience to those restrictions and a monthly boost from the reopening of schools in March.
“The first quarter decline should be followed by a robust rebound in the second quarter as the effects of the release of pent-up demand, as restrictions ease and the strong vaccine rollout, are fully felt.
“However, with the longer-term economic damage caused by coronavirus likely to increasingly weigh on activity as government support winds down, the recovery maybe slower than many, including the Bank of England, currently predict.”