Figures have revealed that the economy shrank 1.5 per cent in the first quarter of 2021 and 8.7 since the start of the Covid-19 pandemic.

But the economy showed signs of recovery in March with a 2.1 per cent rise from retail spending as high streets began to reopen.

Rishi Sunak has said the climb is a "promising sign" of things to come.

Jo Lappin, chief executive of Cumbria Local Enterprise Partnership said: “The March GDP figures for the UK are clearly good news and a sign the national economy is recovering as it is able to open up.

“However, there is still a long way to go before we recover to pre-Covid levels with March GDP still 6 per cent down on February 2020 before the pandemic.

“It's clear there are differential impacts with manufacturing 2 per cent down on pre-Covid levels, construction 2 per cent up and service sectors 7 per cent down.

“In Cumbria, we appear to be pretty much mirroring the national position, with the construction sector being relatively buoyant, conversations with manufacturing businesses suggesting that these too are experiencing a bounce back. The easing of Covid restrictions is leading to welcome signs of a late spring recovery in our important tourism and hospitality sectors, although there remains a long way to go and the national media coverage of a ‘boom’ is yet to be felt”

The economy suffered a further shock in post-Brexit transition period.

Jo said: “The ONS also released data showing that the UK’s exports of goods to the EU recovered again in March to make up some of the lost ground in the early part of the year.

“This is suggesting firms are starting to adapt to the post EU-exit trade arrangements, which is really encouraging, as our work with local businesses identifies that many are still getting to grips with the practical implications of the new trading arrangements for both exporting and importing”.

Gerard Richardson, owner of Richardsons Wine Merchants in Whitehaven said: "It's got a long way to go.

"The economy has actually done rather well, at the start of the pandemic we thought we were all going to be bankrupt in 12 months time, my worry is more on the local business side, certainly retail.

He said: "There's been a seismic shift, people have genuinely moved online."