The Economic Impact Of Coronavirus And What We Can Do About It
The coronavirus pandemic has touched so many aspects of people’s everyday lives, but as a whole, the UK has seen a huge impact on its economy. With the closure of retail, pubs, restaurants and a huge variety of leisure facilities, as well as the tighter restrictions on travel and private sectors, the nation has seen a huge decline in its economy. However, with the roll out of the vaccines, government leaders are looking ahead to the UK’s economic recovery. Here is what we know about the economic impact of coronavirus so far and a few suggestions of how you can help.
The UK’s current economic situation
The UK has been hit particularly hard by coronavirus, with the economic impact dwarfing that felt by our international counterparts. Figures from July – September 2020 show that the UK economy was 9.7% below its pre-pandemic levels, which is more than double the decline that was seen in the US and the EU*. While many businesses moved to the world of ecommerce to continue trading, it was impossible for some businesses to make that shift, resulting in large economic downturns in travel and manufacturing sectors. There was also an influx of redundancies, following the furlough announcement, which has further impacted the current state of the economy.
The projection for the UK economy
According to The Financial Times, the UK economy will be one of the last to recover from the coronavirus pandemic, suggesting that it will take around 18 months for the economy to return to its pre-pandemic size**. Due to the UK suffering more in the earlier stages of the pandemic, the hill towards economic recovery is steeper to climb. However, some people remain optimistic that the nation will have a faster bounce back than expected, with consumer-led growth taking the lead due to the vaccine programme. It has also been suggested that the end of the Brexit transition period would heighten the economic shock further, as it would hit the sectors that were less affected by coronavirus**. The feelings surrounding the projection for the UK economy are mixed to say the least, but there are a few things you can do to help.
What can we do about the UK economy?
If you are a consumer, there are several things that you can do to help play your part in repairing the UK economy. These include:
• Buying British – purchase products from local small businesses to help ensure that more people can keep their jobs and to keep money within your local area.
• Don’t hoard your cash – if your holiday is cancelled or events get postponed, consider accepting a voucher to use another time, rather than asking for a refund. From local theatres to concert venues, this will promise future business with the company and helps them to avoid shelling out for refunds.
• Learn a new skill – lockdown is the perfect time to learn a new skill and whether it’s web design, business management or a language, your new skill can improve your employability.
If you are a business owner in need of financial help, consider applying for a government loan to see your company through the pandemic or seek out loans online. From bad credit loans to help those with difficult financial histories or long term loans to cover your business after the pandemic ends, there is something available to suit your needs.
*Information from https://www.tuc.org.uk/research-analysis/reports/impact-covid-19-and-brexit-uk-economy
**Information from https://www.ft.com/content/5c51299a-fd9f-4e14-9576-a42a6317c324
