logo

Impact of COVID-19 and Brexit on the UK economy Assignment PDF

   

Added on  2021-05-12

3 Pages1189 Words49 Views
 | 
 | 
 | 
Impact of COVID-19 and Brexit on the UK economyIntroduction Covid 19 and Brexit both have badly affected UK’s economy. They both harmed some of the industries collectively and a number of other industries individually. Both caused much damages to country’s overall Gross domestic product. Multiple impacts of Covid 19 and Brexit can be seen on UK’s Economy including big and small scale industries, unemployment rates and trade volumes. Impact of Covid 19 on UK’s economyImpact on macro economics Covid 19 has caused an increase in unemployment and inflation and a decrease in growth domestic product and growth rate. Unemployment rate has increased significantly. Business Impact of Covid-19 survey on 19th October to 1st November 2020 showed that 9% of the workforce which included over 2 million employees remained on partial or full leave (Impact of Covid-19 and Brexit for the UK economy, 2021). They further estimate that there would be an increase in unemployment rate of 1%. According to Office for National Statistics(Coronavirus and the impact on output in the UK economy - Office for National Statistics, 2021), UK’s growth domestic product declined to 9.9% in 2020. However due to third Covid 19 lockdown the economy will be facing more economic contraction as the Institute of Fiscal studies estimated that UK’s economy will be 2.1% lesser in 2021 than in 2020.Impact on micro economics Covid 19 has destroyed almost everything that came into contact with it ranging from restaurants, travelling, education and sports to all private businesses. United Kingdom is no different to other countries in respect of pains caused by Covid 19. As the crisis continue to speed up the physical markets are almost shut down which greatly impacted the small scale businesses. Industries dealing in accommodation, leisure, tourism and food estimated around 60% overall loss on sales (The economic impact of coronavirus on UK businesses | VOX, CEPR Policy Portal, 2021). So as a whole Covid 19 greatly disturbed the small scale enterprises and put a halt on their productions.Impact of Brexit on UK economy Impact on macro economicsBrexit has negatively impacted UK’s macro economy. The volume of trade that UK and European Union shared was almost equal to the volume of trade UK shares with US. Brexit caused UK’s growth to fall down from 2.4 % in 2015 to 1% in 2019 according to the statistics of Office for National Statistics (Gross Domestic Product: q-on-q4 growth rate CVM SA % - Office for National Statistics, 2021). According to theU.K. House of Commons Library (Harari, 2021), over 15 years Brexit will cause a downfall of 6.7% to the
Impact of COVID-19 and Brexit on the UK economy Assignment PDF_1

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents