Economic impact of COVID-19 and government response in UK

Economic impact of the
COVID-19 and the
economic response of the
government and central
bank

Executive Summary
The report will discusses about the impact of COVID 19 and Brexit over UK economy. The Britain
economy declines by 4 percent due to that highlights several major issues in internal environment of
country. Further in the report key considerations to development of an economy is being taken for
instance. Several aspects like; strategies to deal with COVID-19 and considerations to Brexit with its
related impact of economy.

Table of Contents
Introduction – .......................................................................................................................................4
Discussion and Analysis.........................................................................................................................4
Impact of COVID-19 on the UK’s Economy –...............................................................................4
Major Economic Responses of the UK’s Government and their Implications –...........................5
Major Responses of the Bank of England and Their Implications to the UK’s Economy........................8
What are the likely impacts of Brexit on the UK’s economy?......................................................9
Conclusion...........................................................................................................................................11
Recommendations...............................................................................................................................12
References...........................................................................................................................................13

Introduction
The pandemic situation has impacted worlds economy and raised several unpredicted
problems for nations. Due to COVID 19 and Brexit UK government faced some serious restrictions
that laid down the country economy. The decision of leaving the EU has dropped affected UK GDP
by 4%. Exports were reduced by around 19% as well as imports by 21%. In COVID pandemic all the
working operations of UK and other nation had shut down that impacted peoples livelihood and
government function. In this given report the impact of pandemic on UK's economy is being discuss.
Further,major responses and their implications that are taken by UK's government and bank of
England to concur the above situation is being illustrated. In last, some immediate and future impact
of Brexit on UK's economy will discuss in the given report (Brouder, 2020).
Discussion and Analysis
Impact of COVID-19 on the UK’s Economy
COVID 19 virus has spread rapidly in whole worlds economy that shows the
interconnectedness and vulnerabilities of economy. It infected major numbers of people globally.
Around 6.2 percent of adult population in UK'S has faced this viral diseases. Millions of people of
UK's has gone through this deadly disease. Due to the transmitted diseases peoples well-being and
their financial condition has pushed down so harshly. Peoples faced problems even in managing
their day to day operations. Long term pandemic has weakens the circular flow of income that
collapsed the day to day activity of respective peoples of UK. All the businesses operations were
stopped and economy speed were slowed down that lowered the Production, expenditure and
income phases of economy. Peoples were stopped their expenditure on various unnecessary
commodity due to lack of income. The pandemic has restricted the flow of demand and supply and
impact had showed clearly on every persons life (Comunian, and England, 2020).
The COVID 19 has increased the unemployment rate in its initial stages. Number of peoples
were lose their jobs due to this unexpected pandemic. The labour market is majorly impacted. Many
young workers has applied for the unemployment advantages in government policies. The larger rise
in unemployment were among between the age group of 25 to 64. majorly women's, and disabled
workers loose their jobs due to physical restrictions in core sectors like hospitality, leisure, retail
store etc.
Due to restrictions in economy operations many business has collapsed. COVID 19 has
impacted various large of number of businesses sales. Around 40 percent operations of businesses