Economic Impact of Covid on UK: Government and Bank of England Responses and Likely Impacts of Brexit

Economic Impact of
Covid

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Explaining main economic impact of COVID-19 on economy of UK...................................1
2. What are major economic responses of government of UK along with their economic
implications..................................................................................................................................3
3. Analysis of major responses of Bank of England as well as their implications to economy of
UK................................................................................................................................................5
4. Likely impacts of Brexit on economy of UK..........................................................................6
RECOMMENDATION...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Covid-19 is a termed to an infectious disease that is caused by virus named as SARS-CoV-2.
It has led to dramatic loss of human life across the globe as well as presents unprecedented
changes to food system, public health addition to world of work (Sharma, Talan and Jain, 2020).
Social along with economic distractions caused by the circumstance is devastating as tens of
millions of populations are at risk of falling towards extreme poverty, while huge became
undernourished people. In UK, Covid-19 has impacted adversely as domestic demand addition to
exports sharply plummeted with notable exceptions in which high growth was seen.
The report includes main economic impact of Covid-19 on an economy. It also includes
major economic responses of government of the nation and their implications on economy.
Further, it analyses major responses of financial institution and their implications on economy of
the country. At last, it includes likely impacts of Brexit on nation’s economy.
MAIN BODY
1. Explaining main economic impact of COVID-19 on economy of UK
Impact of COVID-19 pandemic on UK’s economy has largely disruptive practices along
with loss of lives of human. Coronavirus pandemic results in contraction of UK and internal
economy which reflect the ways in which it leads to reduction in demand of products and
impacts potentiality of ventures for supply commodities (Zaremba, Kizys and Aharon, 2021). It
impacted adversely employment, number of industries, shipping, travel and financial market.
The dramatic economic downturns have profound impacts on labour market of the country as
more than 90 percent of workforce across the nation live where business closures are still in
places for various economy sectors. The economy of United Kingdom slump by around 11.5%
in 2020 which slightly outstripped falls in nations.
1