The economy of UK was growing at a modest growth rate before the COVID-19 pandemic. As per the IMF, the GDP growth of UK was 1.3% in 2018. It was also projected that the GDP will grow by 1.4% in 2020. However, achieving this growth rate has become next to impossible as owing to the pandemic, the country announced a partial lockdown. On 20th March 2020, the government announced to shut all schools, restaurants, clubs, and other leisure facilities. On 23rd March 2020, the government announced a lockdown and banned all “non-essential” travel and contact with people. The government also shut down businesses and places of worship. The country is also ordering a huge number of medical equipment and PPE kits to treat the virus affected patients. UK has announced to provide millions of home testing kits to the self-isolating people to test them for coronavirus. These kits will be delivered through Amazon distribution channels. The government of UK has bought 3.5 million test kits for the same.
In June 2016, UK decided to withdraw from the European Union and the country left the EU on 31st January 2020. A slowdown was expected due to the ‘Brexit’ as many companies are planning to shift their headquarters from UK to other European countries as the country will lose the ‘trade free’ status in Europe. The companies in UK will also not be able to bid on public contracts in any EU countries. The cost of airfares, the internet, and phone services are also expected to increase after the Brexit. The outbreak of the COVID-19 pandemic originating from China, has put a threat to the macroeconomic stability of European countries. UK has significant trade relations with these prominent economies such as the US, China, Japan, and India in terms of trade. Trade between all these countries has increased significantly in the last two decades. The widespread pandemic all across the globe is expected to affect almost every industry vertical in the country.
The COVID-19 has impacted the functioning of every sector, including travel and tourism, aviation, hospitality, and manufacturing in the region. To date, no specific date or month can be claimed for the COVID-19 end; however, it is expected to end soon, maybe by the second half of 2020. Post COVID-19, there are several sectors that will outpace with significant growth and improve their downfall by the end of 2020. IT & telecom, retail, automobile, and manufacturing sectors are expected to cope to a certain limit after the collapse. At present, healthcare companies especially flu drug manufacturing companies, diagnostic companies, and PPE companies are witnessing a boom in demand. After the end of the pandemic, the healthcare sector may experience steady growth, as the urgent need for healthcare facilities and equipment such as hospital beds and ventilators will get fulfilled and the hospitals will have enough similar supplies for the treatment of the patients with other diseases in the future. Thus, apart from healthcare, and food & beverage industry; every other vertical is witnessing the negative impact due to the pandemic.
