CBI responds to release of Q1 GDP figures

Alpesh Paleja, CBI Lead Economist, said:

“While latest data confirms the economy was hit once again by a renewed lockdown at the turn of the year, the fall in activity was much smaller compared with Spring 2020. Households and businesses have clearly adapted better to working and living under Covid restrictions, despite the brutal cost of doing so.

“A range of indicators, including CBI business surveys, point to a rebound in activity heading into summer – with the economy opening up and pent-up demand waiting to be unleashed. But this is a recovery that will be felt more by some. Undoubtedly, hardest-hit sectors and households have a longer road ahead.

“To inject momentum into the recovery, the government can provide clarity on outstanding issues around re-opening, including social distancing, access to workplace testing and use of Covid-status certification. The time has also come for real global leadership, starting with using today’s B7 recommendations to drive a sustainable recovery from the pandemic and provide the tangible action needed on other big issues including the climate emergency, promoting free trade, and unleashing the potential of digitalisation.”