Impact of COVID-19 on UK's Economy: Government and Bank of England Responses

Contemporary
Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact of pandemic (COVID) on UK's Economy......................................................................3
Important Economic responses of the government of the UK and its consequences ................4
Various important responses of the Bank of England and its implications on UK's economy...6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Contemporary business environment are the environment of the business that are
increasingly competitive and dynamic. The companies have to develop and cope up with the
changes in order to survive in the competitive market. It is important for the economy in order to
cope up with the plans. This project will outline the impact of the pandemic on the economy of
United kingdom by describing the income circular flow and other factors. Further it will be
evaluate the major economic factors of the UK's government and their implications. At last this
project will outline the various important response of the Bank of England and its consequences
on UK's economy.
MAIN BODY
Impact of pandemic (COVID) on UK's Economy
The economic impact of the COVID- 19 pandemic on the economy of the UK has been
largely disruptive. This pandemic leads to the several recessions, which was followed by the
strong recovery in the market of UK (Keogh-Brown and et.al., 2020). By the first lock down, the
GDP of the UK was get lower by 25% in April 2020. The economic activity of the company was
lift up and has reflection the opening up of the economy of the country. The pandemic has
affected the various sectors of the economy to the different degrees.
The circular flow of income basically forms the basis of the models of the economy and
used to explain the circular flow process in the national economy (Alradhawi And et.al., 2020).
There was a great impact on the circular flow of the economy. The income flows on the economy
of the country has affected the national income of the country.
There are some factors which has affected by the COVID- 19 pandemic are as follows:
Unemployment: This is the situation when the people who are wiling and able to work
are not getting the jobs in the market. Due to pandemic there was a great effect the employment
of the people (Ozili and Arun, 2020). As many people used to get affected na take out from the
jobs due to lock- downs. The organization used to take out their employees due to no work in the
economy as the whole economy was locked up. This pandemic has affected the jobs of the
people and make them unemployed.
Collapsing of business: The various business groups has been collapsed as the business
were not having the adequate capital in order to run their organizations separately. Business