Changes in Gross Domestic Product after COVID-19

This report discusses the impact of COVID-19 on GDP and the global economy. It includes a literature review, data collection, quantitative analysis, and visualization of data charts. The report also identifies the main sectors that contributed to the increase in GDP after COVID-19.

Problem Based Report
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TABLE OF CONTENT
TITLE: CHANGES IN GROSS DOMESTICPRODUCT AFTER COVID-19.............................3
INTRODUCTION...........................................................................................................................3
Background of the study..............................................................................................................3
Aim and objectives......................................................................................................................3
Research problems.......................................................................................................................3
LITERATURE REVIEW................................................................................................................4
Factors that affect the notion of a globalized economy and GDP...............................................4
Data collection ............................................................................................................................4
Quantitative analysis of dataset ..................................................................................................5
Visualization of data charts..........................................................................................................6
FINDINGS (450)...........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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TITLE: CHANGES IN GROSS DOMESTICPRODUCT AFTER COVID-19
INTRODUCTION
Gross domestic product is an accurate indicator of the size of an economy (Coscieme and
et.al., 2020). It can be defined as the total value of services and goods, produced within country’s
borders in specific time period as it may be monthly, quarterly and annually. Most major
economies have lost around 2.9% of their GDP over 2020. One of the main reasons of decreasing
and poor economy is Covid-19. Changes in business environmental factors affect this to the great
extent.
Background of the study
Gross domestic value is the total monetary of market value of all finished goods as well as
services, produced within country’s borders. This study is going to discuss impact of covid-19 in
GDP of UK and other countries. When changes happen in environmental factors that it directly
affects economic condition and spending power of consumers. This study is going to discuss
impact of Covid-19 in changing gross domestic production and changing global economic
condition. Further, it will discuss data collection methods and quantitative analysis of GDP data.
quantitative and statistical data analysis can help out in identifying trends and accomplishing
goals as well.
Aim and objectives
Aim: The aim of conducting this study is “To identify the difference in GDP before Covid-19
pandemic and after Covid-19 pandemic”.
Objectives
 To discuss the concept of gross domestic product.
 To identify impact of GDP on organizational performance.
 To identify relation between GDP and COVID-19.
Research problems
The main business research problem on which this study will focus is: lower productivity
and sales (Jena and et.al., 2021). Due to Covid-19 and poor GDP, companies are facing
productivity and sales related issues. By evaluating factors and impact of Covid-19 in GDP
fluctuation, it will help out businesses in improving overall performance and help out their
countries in improving economic condition.
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LITERATURE REVIEW
Factors that affect the notion of a globalized economy and GDP
Before discussing factors that have affected global economy and GDP, it is important to
understand GDP. According to the Han and et.al., (2021) GDP refers total market value of
finished goods and services that made within a country at the time of specific period. In other
words, it provides an economic shot of country that is being used to estimate the size of
economic growth rate. There are number of factors that can affect economic condition and GDP
such as: technology, human resource, business investment, government spending and other
environmental factors such as: exposure of infectious and other diseases.
Elleby and et.al., (2020) supported above view and stated that during the first lock-down,
GDP of UK was 25% lower in April 2020 than it was only two months earlier in February. A rise
in Covid-19 cases and lock down again lead to poor economic condition. The pandemic has
affected different sectors of economy to different degrees. Sectors that reliant on social contact
such as hospitality, entertainment have been affected badly because of lock down. Some other
sectors such as financial services have fared relatively better. The reason behind it was: lock
down and poor spending power of people. It decreased flow of income in market and decreased
flow of income directly affect GDP. So, on the basis of this, it can be said that Covid-19
pandemic affected global economy to the great extent.
Data collection
There are two types of data collection such as primary and secondary. Primary data refers
information that have been used for the first time and secondary refers existing literature that
have easier access. For this research study secondary data have been used. For collecting
secondary information, National statistics website has been used (van den Akker and et.al.,
2021). This website and source has provided data related to GDP in which changes have been
happened because of Covid-19 pandemic. It can help out in solving business research problem
that is improving economic condition by evaluating factors that are affecting GDP.
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Quantitative analysis of dataset
On the basis of GDP quarterly data, collected from National statistics website, it can be
said that GDP in the second and fourth quarter of the year 2012 was in negative which means
economic condition was very poor in this year. In the year of 2013, GDP of UK was quite better
and it improved. Rise in GDP improved economic condition of UK and on this basis, it can be
said that it had great positive impact on organizational performance.
As compared to 2013, economic condition and GDP raised in the year of 2014. There are
number of reasons that can affect GDP and overall economic condition (Maliszewska, Mattoo
and Van Der Mensbrugghe, 2020). One of the main factor that increased and raised GDP of UK
in this year include: technological advancement. We can compare the difference between GDP of
the year of 2019 and GDP of 2020 as well as 2021. In first quarter of 2019, GDP of UK was
0.6% and in second quarter it fallen and became 0.1%. In third quarter it raised again and became
0.5%. In the last quarter when Coronavirus outbreak, GDP fallen and it was CVM SA0.0%. In
first two quarter of 2020, GDP and overall market value of UK was in negative because at that
time there were lock down and there was no cash inflow in the market so, it became -2.6 and -
19.4. When government allowed industries and businesses to run their business then GDP
improved to some extent. In third and 4th quarter of 2020, GDP and market value was increased
and it was: 17.6 and 1.5%.
Again in the year of 2021, it fallen down in the first quarter, it was -1.2% and in the
second year, it was 5.6. In the third and 4th quarter of 2021, it was 1.0%. It is expected that GDP
of UK and other countries will raise to the great extent as people are investing in entertainment,
travelling and other sector and all these sectors are main contributors of GDP and economic
condition (Keogh-Brown and et.al., 2020). People have identified alternatives of operating their
business and that is working from home. Home deliveries and working from home has made
people able in earning money. So, on the basis of this, it can be said that technological
advancement is one of the main key factor that has made companies able in operating their
business without getting affected in a negative manner and contribute in increasing GDP as well
as economic condition. The % of business reporting zero in survey at the time of December 2020
as it was 7.9%. An improvement on 8.1%, reported in November 2020. At the time of
Coronavirus pandemic, food and healthcare were the main sector that contributed in GDP and
economic condition. At that time IT sector and food sector were delivering online services to
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customers and it made companies able in improving economic condition. Technology was the
reason as number of people continued their work (Hassani and Shahwali, 2020). Nowadays or in
post Covid-19, many IT companies have continued and allowed work from home and people are
working from home in a safely manner. Safety was the main concern after Covid-19 and it was
the reason as many companies has allowed work from home and continuing them. Employees
are finding easier as they can spend time with family and can take care of them, So, on the basis
of this, it can clearly be said that Covid-19 was the main hot factor that has affected global GDP
and economy.
Visualization of data charts
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2012 Q1
2012 Q2
2012 Q3
2012 Q4
-0.2 0 0.2 0.4 0.6 0.8 1 1.2
Column B
Illustration 1: Changes in GDP quarterly

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0.5
0.7 0.8
0.5
2013 Q1
2013 Q2
2013 Q3
2013 Q4
Illustration 2: Changes in GDP quarterly

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2014 Q1 2014 Q2 2014 Q3 2014 Q4
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Column B
Illustration 3: Changes in GDP quarterly

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2018 Q1
2018 Q2
2018 Q3
2018 Q4
0 0.1 0.2 0.3 0.4 0.5 0.6
Column B
Illustration 4: Quarterly changes in GDP
0.6
0.1
0.5
2019 Q1
2019 Q2
2019 Q3
2019 Q4

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2020 Q1 2020 Q2 2020 Q3 2020 Q4
-20
-15
-10
-5
0
5
10
15
20
Column B
2021 Q1 2021 Q2 2021 Q3 2021 Q4
-2
-1
0
1
2
3
4
5
6
-1.2
5.6
1.0 1.0
Column B

GDP in the year of 2020 was poor and it declined to the great extent as compared to 2018-2019.
In 2021, Food and other sector of businesses contributed in improving economic condition and
GDP.
FINDINGS
August was the first month when there was no coronavirus and due to no restriction, it
led to monthly gross domestic product growing by 0.4% between July and August 2021. There
were two main sectors that contributed in raising GDP such as: food service and accommodation.
Arts, entertainment and recreation were other sectors that also contributed in increasing
economic condition and GDP. From January 2020 and July 2020, economic condition and GDP
of UK fall to the great extent.
After this Covid-19, situations became normal to some extent as soon as travel sector and
other sector were being opened, it led positive impact on overall market value and global GDP
(Elleby and et.al., 2020). The reason was: cash inflow. Due to lock down and restriction on
number of sectors to operate business such as: accommodation and travel, GDP fall down. So, on
the basis of this, it can be said that having an improved economic consition, spending power and
cash inflow in market is essential for improving GDP and overall market value. It can have
number of positive impacts as it can improve living standard of people, can increase profitability
of companies and can provide employment opportunity to people. Overall, it can be said that
companies need to evaluate all these factors and need to identify back up plans and other plans
so that they can continue their business operations and can contribute in raising GDP and
improving living standard of people.
In regard to service industry, it can be said that it increased in the first half of December
2020 following the relaxation of business restrictions and it had affected GDP of November 2020
in a negative manner. On the basis of secondary data, it can be said that service industries
remained 6.9% below the level of February 2020 (Park, Villafuerte and Abiad, 2020). In regard
to production industry, it can be said that at the time of Covid-19, this industry remained 3.6%
below their February 2020 level.
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There were number of other sectors that got also affected by this Covid-19 pandemic to
the great extent such as: manufacturing and construction. Manufacturing industry was declined
by around 3.4% since February 2020 and on the other hand, it grew by 0.3% during November
2020. As like this, construction sector was also declined by around 3.4% since February 2020
and when there was lock down and again fell down by 2.9% in the latest month.
On the basis of this data, it can be said that all sector and industries, except construction
was the one that grew in the current year of after Covid-19 and they regained their image in the
market. Construction sector is the one that declined even after Covid-19 and one of the main
reason behind this is: increasing cost in building construction. After Covid-19, people have
become health conscious and rather spending high in construction of buildings and buying house,
they prefer investing in small and necessary things like and it is the reason as construction
industry has not regained its image and market share and it will take too much of time (Altig and
et.al., 2020). Until economic condition of countries get improved, businesses of all industries
will have to strive hard.
CONCLUSION
It has been summarised from the above study that GDP and improved market value plays a
vital role as it enables companies in improving their performance and profit. GDP has direct
impact on businesses' performance. This study has discussed number of factors that can affect
gross domestic product and overall market value of countries such as: technological, social,
demographic and other environmental factors. This study has discussed impact of Covid-19
pandemic and exposure of infectious disease on decreasing gross domestic product and lowering
economic condition. It has compared GDP data of 7-8 years as before Covid-19 and after Covid-
19 in order to know the difference and factor that can affect GDP. Further, it has shown
effectiveness of statistical evaluation in research study and ways in which it can help out
researchers in accomplishing their goals. Fluctuation and economic condition and GDP affect
different areas of business such as: sales, profitability, employment opportunities and others.
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REFERENCES
Books and journals
Altig, D. and et.al., 2020. Economic uncertainty before and during the COVID-19
pandemic. Journal of Public Economics, 191, p.104274.
Coscieme, L. and et.al., 2020. Going beyond Gross Domestic Product as an indicator to bring
coherence to the Sustainable Development Goals. Journal of Cleaner Production, 248,
p.119232.
Elleby, C. and et.al., 2020. Impacts of the COVID-19 pandemic on the global agricultural
markets. Environmental and Resource Economics, 76(4), pp.1067-1079.
Elleby, C. and et.al., 2020. Impacts of the COVID-19 pandemic on the global agricultural
markets. Environmental and Resource Economics, 76(4), pp.1067-1079.
Han, P. and et.al., 2021. Assessing the recent impact of COVID-19 on carbon emissions from
China using domestic economic data. Science of the Total Environment, 750, p.141688.
Hassani, K. and Shahwali, D.O.S.T., 2020. Impact of COVID 19 on international trade and
China’s trade. Turkish Economic Review, 7(2), pp.103-110.
Jena, P.R. and et.al., 2021. Impact of COVID-19 on GDP of major economies: Application of the
artificial neural network forecaster. Economic Analysis and Policy, 69, pp.324-339.
Keogh-Brown, M.R. and et.al., 2020. The impact of Covid-19, associated behaviours and
policies on the UK economy: A computable general equilibrium model. SSM-population
health, 12, p.100651.
Maliszewska, M., Mattoo, A. and Van Der Mensbrugghe, D., 2020. The potential impact of
COVID-19 on GDP and trade: A preliminary assessment. World Bank Policy Research
Working Paper, (9211).
Park, C.Y., Villafuerte, J. and Abiad, A., 2020. An updated assessment of the economic impact
of COVID-19 (No. 133). Asian Development Bank.
van den Akker, O.R. and et.al., 2021. Preregistration of secondary data analysis: A template and
tutorial. Meta-Psychology, 5.
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