The coronavirus pandemic has affected human lives in many ways. From getting locked in our own houses to people losing their lives.
This coronavirus outbreak has a substantial economic impact on nearly every country. The economy of the United Kingdom was also affected by the outbreak. The effect of lockdown rules, which have resulted in the closure of several businesses in order to minimize mobility, has been disastrous for the UK economy.
The scale of the economic downturn brought on by the outbreak is unmatched in contemporary history. In 2020, the GDP of the UK fell by 9.8%, the sharpest loss since the year 1948 when the record started and the largest in over 300 years, according to some estimates.
In April 2020, during the first lockdown, the GDP of the UK was lowered by 25% than it had been in February 2020. The economy began to perk up in the summer and spring, signaling the economy's opening and restrained demand from the very first lockdown.
In April 2020, during the first lockdown, the GDP of the UK was lowered by 25% than it had been in February 2020. The economy began to perk up in the summer and spring, signaling the economy's opening and restrained demand from the very first lockdown.
In November, a second lockdown occurred which was short-lived but resulted in yet another monthly drop in GDP. The restrictions were temporarily relaxed in the following month but tighter lockdowns had been reintroduced in January 2021 due to the new virus strain driving higher corona infection rates. Another drop in GDP as a result of this.
All of the key elements of monthly GDP were below pre-pandemic levels in February 2021. The major cause of this drop was drop-in services, which were 8.8% lower in February 2021 than they were in February 2020.
Although the service industry has yet to return back to the pre-pandemic level, there are certain industries that have been hit worse than others such as the areas of transportation, accommodations, entertainment, travel agencies, arts.
Manufacturing dropped by 4.2% in February 2021 than in February 2020 which was the largest contributor to the drop in production. Since, production has not returned back to the pre-pandemic level certain industries that are hit more as compared to others are: coal and lignite mining, aviation and spacecraft manufacturing, coke, and refined petroleum production.
Even though the GDP was dropping the economy has been seen to be adapting effectively, with a significantly lower drop in economic output in early 2021, as GDP dropped by 2.5% in January when compared with spring 2020 lockdown. In March 2021, UK's GDP was 6% below what it had been prior to the outbreak.