Evaluating the contemporary business environment

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explain the main economic impact of COVID-19 on the UK’s economy.............................1
TASK 2............................................................................................................................................3
What are the major economic response of the UK’s government and their economic
implications............................................................................................................................3
TASK 3............................................................................................................................................5
Analyse the major responses of the Bank of England and their implications to the UK’s
economy.................................................................................................................................5
TASK 4............................................................................................................................................7
What are the likely impacts of Brexit on the UK’s economy.................................................7
Recommendations............................................................................................................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10
Online...................................................................................................................................10

INTRODUCTION
In the contemporary business environment, the organisations are operating into the highly
competitive business environment. Also, there is huge decline in the business profits with the
emergence of global pandemic Covid-19. The pandemic has lead the businesses to complete
shutdown which has caused the economic crisis for the business environment. The diseases have
lowered the productivity of several business sectors due to which overall GDP of the world is
declined badly. Due to the Covid-19, many business organisations are facing the issue of losses
and some are struggling badly for survival. Businesses like travel and tourism has faced the huge
losses due to the complete ban on travelling. The present report will discuss about the main
impact of COVID-19 on the UK's economy and the UK's government economic response and its
economic implications. Further, the major responses of the Bank of England and their
consequence on the UK's economy is discussed. At last, likely impacts of the Brexit on the UK's
economy is discussed in the report.
TASK 1
Explain the main economic impact of COVID-19 on the UK’s economy
The COVID-19 is the major infectious disease caused by the spread of virus named as
Corona Virus. The disease is spreading all over the world in fast speed causing huge amount of
death due to which UK government announced a complete lock-down in UK and other countries
of the world overnight. This has caused a major disruption to the UK's economy because it has
adversely effected the industries that contribute majorly to the UK's economy such as travel and
tourism, financial markets, employment and many other industries and shipping. After analysing
the monthly growth and development of the production, service and construction sector of the
business in the UK economy, it was highlighted that global pandemic COVID-19 has caused
some of the main impacts on the UK's economy.
According to the, (Coronavirus: Economic Impact, 2021), The COVID-19 has triggered
unprecedented economic shock to the UK's economy. The GDP of UK declined by 9.8% in
2020, because in first lock-down in April 2020 the GDP dropped by 25%.
1

According to the, (Impact of Covid-19 on the UK labour market: The case for a place-based
recovery, 2021), The labour market of the UK also faced the high pressure and is still under the
pressure due the COVID-19. By January, 2021 the unemployment in UK has been increased by
5% and also in April 2020, 31% eligible jobs of UK were downsized. According to the
Cambridge Econometric analysis, the gross value added has also fell by the 9.4% i.e. Euro 164
billion in 2020.
2
Illustr
ation 2: Comparison of job recoveries following previous crises, 2021
Illustration 1: Economic impact to date, 2021.