The worst financial year for the economy of the UK after 1709, shows a positive surge in fourth-quarter!
The country’s economy saw a recession of around 9.9% in 2020. This is the highest shrink in the last 312 years for the UK Economy. The Coronavirus Pandemic gets huge credit for this downfall! Despite the GDP being on the back foot, the fourth quarter showed a 1% gain.
However, Rishi Sunak, the UK Finance Minister, is still optimistic about economic recovery. He feels that the UK too is in line with the rest of the world. As it did not do unexpectedly like the headlines make it seem. After a nation-wide lockdown was imposed, the world’s fifth-largest economy saw a downfall of 25% in April and March last year.
In a discussion with Sky News, he insisted that UK economy is in a much better position while comparing it to the rest of the EU. Now, his words come around the time when people are speculating his plans for the March Budget.
An Insight into the Reasons for the Downfall of the British Economy
Earlier, the higher no. of Covid-19 cases had made things hard for the government. The country has seen the worst scenario when it comes to the outbreak. Around, 1,20,000 people died due to the same reason. Even, the entertainment market, which plays a major role in GDP, was hit hard.
Though, this news did not shake the stock market completely. Still, the investors are keeping a watch. As new Coronavirus variants force countries to go for more lockdowns. Many economists claim that Brexit trade tensions were also a reason for the economic downfall!
Due to the ongoing tensions amidst Germany, Czech Republic, and Austria the sink may be deeper, they claim. Although, it has been successful in avoiding a double-dip recession.
The economy saw a life boon in December. After, the November lockdown ended. A boost in online shopping and pubs and restaurants offering takeaways did the helping. The companies have also renewed their working pattern. In order to keep up with the virtual world, everything is changing!
The UK Prime Minister, Boris Johnson hopes for the recovery of the economy after a rapid vaccination drive. It is expected that the vaccination will reopen the International market. Moreover, it will do favorably well in countries of the European Union. Many businesses are looking forward to a huge and positive surge in the UK economy.
Sooner or later, a better growth in GDP in 2022.
Author- Apexa Rai
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