Quantitative Data Analysis Report on Impact of Covid-19 on the GDP of UK

2. PROJECT1
QUANTITATIVE DATA
ANALYSIS REPORT
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Table of Contents
INTRODUCTION...........................................................................................................................3
Business Research Problem.........................................................................................................3
Literature Review........................................................................................................................3
Quantitative Analysis of the Dataset...........................................................................................6
Visualisations of data drawn from Quantitative analysis............................................................7
Findings from Quantitative Analysis and Charts.........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Quantitative data analysis simply means the analysis of number based data or the data which
can be easily convertible in numbers. However, while converting data it is important to note that
data does not lose its meaning. The business research problem on which the present report is
based is “Impact of Covid-19 on the GDP of UK”. The report will discuss this business research
problem in the form of Literature Review using Business Cycle model. Further, the report will
also analyse the quantitative data such as Monthly GDP for the period of Jan. 2018 to Jan. 2022
using descriptive analysis tools, charts and diagrams. Lastly, the report will conclude the findings
of the quantitative data analysis.
Business Research Problem
“Impact of Covid-19 on the GDP of UK” is a selected research topic which will state how
the Covid-19 has leads to decrease in GDP. The decrease in GDP of UK means the economy of
UK is shrinking which is basically bad news for the businesses as well as workers. The problem
arises due to fall GDP is pay freezes and lost job. The Covid pandemic has caused the severe
recession which are not seen in the past 300 years (Keogh-Brown and et.al., 2020). Due to Covid
-19, the GDP of UK has declined for more than two quarters which are the sign of recession in
UK. This has hurt the businesses, employment and also force the government to borrow huge
amount of funds in order to support the economy as well as businesses. During Covid-19, the
businesses are unable to provide and deliver its goods to ultimate customer because of lack of
transport facility. Also, because of the fall in GDP the businesses average income has reduces
because of the insufficient consumer’s demand. Further, because of the reduction in the average
income of the businesses due to falling of GDP during Covid-19, the businesses start cutting
salary of their employees and also firing employee from job. Hence, the business research
problem for the current report is that how the Covid-19 has leads to decline in GDP which
further a huge loss for the businesses.
Literature Review
As per the opinion of Allas, Canal and Hunt, (2020), the decline in GDP due to Covid-19
has causes huge financial and revenue loss to the businesses. It is because the businesses have
faces insufficient consumer demand after the Covid-19 as people are starting shifting to basic
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needs products rather than spending unnecessary money on luxury products. It is because the
salary of UK people is highly cut by their employer during the pandemic and recession. As well
as during lock-down the business was unable to deliver its products such as perishable products
to its ultimate customer which causes spoilage of goods. The result of which the cost of
businesses has increases with minimum or low income. However, on the other hand, the Liu and
Lin (2021), has stated that in case if the GDP of the country increases that it will leads to better
economy of country. Also, this is work as a growth opportunity for the businesses. Rising GDP
means more jobs are likely to be created by the businesses and workers will get better pay rise.
In order to understand the relationship between GDP of the country and businesses
performance, the Business Cycle model is best. As stated by Galli (2018), the business cycle
model basically states the how a national GDP fluctuates over the period of time, going through
different phases as an increase or decrease in aggregate output. This model also states at which
phase of growth the businesses are currently in as per the change in the aggregate output or
country GDP. There are basically four phases in business cycle through which business move as
per change in national GDP over the period of time and these are as follows:
Expansion phase: This is the first phase of business cycle model which state that when
the real GDP of the country increases and unemployment rate of the country decreases, then
businesses lies in the expansion phase. This is a situation of positive output gap. According to the
views of Konon, Fritsch and Kritikos (2018), when the real GDP of the business increases, the
average income of the businesses increases because they have sufficient demand of consumers
for their products and services. The result of which the employer able to provide higher and
better wages as well as pay rise to its employees. The expansion stage also helps the businesses
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