Coronavirus has changed all that we know, leading to country-wide shutdowns and potentially devastating economic consequences. GDP is likely to fall significantly this year as large swathes of businesses have been shut down, unemployment is starting to rise and consumer confidence continues to shrink.
Gerald Edelman’s latest report provides an insight into the effects that Covid-19 has had across a multitude of sectors, focusing on the impact on key economic factors.
Carl Lundberg, partner at Gerald Edelman and author of the report, said, “The shock to the global economy has drawn comparisons to the 2008 global financial crisis and even the Great Depression. However, one of the key differences here is the onset occurred at an extraordinary rate; in the UK, the closure of all non-essential shops has led to rising unemployment and contracting GDP rates. Consequently, economists predict that the UK will see a 2.6% fall in GDP growth in 2020.
There is some good news: forecasters predict that the economic downturn will be short term, and the UK will start to recover in 2021, expecting a 1.7% increase in GDP.
However, much of this is still speculative, based on the assumption that the UK will ‘re-open’ in the summer. At such unprecedented times, we cannot be certain where we will be in a few months, but we can do our utmost to ensure business get through this difficult time and secure their futures, post-Covid-19 by utilising government support schemes, cutting costs and acting strategically.”
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