Impact of COVID-19 on UK Economy: Rise in Inflation and Cost of Living

COVID affects to UK
economy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The pandemic of COVID-19 has resulted in impacting upon all the economies in the
world with adverse and negative effects. With the spread of virus in the society since the initial
phase, it has been resulting in being a negative barrier to people in carrying out their personal as
well as professional activities in an efficient manner. In addition to that, UK economy is among
the major economies which has faced adverse effects through pandemic phase of COVID-19.
Moreover, from people in society to representatives engaged in business organisations operating
in United Kingdom, each and every individual has faced issues due to spread of virus. Though,
many of the necessary businesses were going-on in that pandemic phase but they need to be
abided by rules and regulations implemented by government over that particular business. This
report essay will be comprised of insightful knowledge regarding the impact of COVID-19 over
world as well as UK economy in context of various significant factors (Bagchi,and et.al., 2020).
MAIN BODY
The rise of the pandemic COVID-19 was initially observed in the economic nation of
China which got further spread all around the world. For instance, with the travelling of infected
by the virus from one economic nation to another, it gave a rise to global crisis with patients in
almost each and every economic nation in the world. In addition to that, people were getting
infected from the spread of virus all around the globe with various symptoms of coronavirus.
With the spread of virus, people were feeling degradation of morale in meeting up with people in
a physical manner due to fear of getting infected from the virus. Furthermore, the primary
problem of this virus lied in visibility of symptoms which could be experienced by people but
after a big time-span of around 10-14 days. Furthermore, it resulted in development of negative
working environment due to lack of confidence among people in society to step out of there
shelter in order to carry out their personal as well as professional work.

In addition to this, all these adverse effects of pandemic COVID-19 affected business
organisation in some or the other manner. For instance, with the fear of getting infected, people
started avoiding unnecessary travels and visits in consumer market, which further resulted in
downfall of sales of products and services offered in the market. Moreover, each and every
business organisation in world economy has faced negative impact as well as losses due to
pandemic of COVID-19 (Barua, 2021). The huge losses incurred by businesses has resulted in
closure of several business entities due to inability of company to incur losses and afford fixed
expenses of business. In addition to that, Supply chains of businesses were majorly affected with
spread of virus as government has introduced restrictions upon almost various different activities
in order to tackle the situation of crisis or pandemic. Furthermore, almost every business and