COVID-19 has been brutal to the economy, so much so that the dollar seems to be dwindling on a thin strand. There has been some recovery as we slowly see the situation nearing an end. It comes as a major relief to businesses that were subject to strict lockdowns as per government notice. Some of these business owners are in a thick pickle, though. This includes every niche, real estate, food business, education, travel, you name it. According to BBC, Covid-19 has become an 'economic crisis'. These are the exact words used by UK’s chief economist, who is in direct contact with the UK's Office for Budget Responsibility.Economic crashes in 2008/2009 took about 8 years to recover fully. How can we recover from economic destruction caused by COVID-19 in 2020?
Mainstream News Media
On a national level, it is hard to predict how well the state will handle economic blows due to the necessary lockdown. Unemployment goes sky-high as business owners have tried to minimize their workforce to save money going into salaries. According to mainstream media, these economic losses will take time to recover. Let’s hear from the most influential news sources out there.
The Guardian posts on their website that it will take a minimum of 3 years for the economy to recover. Every business, irrespective of niche, must return to the point from where downfall started in 2020. According to the EY Item Club,“almost half of all consumer spending in 2020 – the major engine of UK growth over recent decades – is at risk of either being delayed or lost completely.”
According to reports by the BBC, schools are reopening and England is reverting back to better days for everyday people. Business owners, however, might not show as much enthusiasm due to huge losses in sales revenue. According to a recent article, “The Scottish government analysis said that the downturn in economic output began in March, continued into April, and it is assumed that it will not pick up until at least July.”
In a worrisome article,‘COVID-19 Effects Might Quadruple U.K. Bank Credit Losses In 2020’, this news resource claims that the effects of COVID’19 will be long-lasting for the economy. There has been much discussion based on GDP statistics and past experiences regarding financial matters in the U.K. ‘We project a rebound in 2021, with GDP growth of 6.0%, but risks remain skewed to the downside, and the effects of COVID-19 will be evident for long after the crisis subsides.’
In this age of advancement and strategy, influential businesses know how to handle any situation, even one as dire as the COVID-19. How long do you think it will take the economic situation to neutralize? Will the economy rise, or fall? Are these mainstream media sources providing enough information to rely upon? We would love to hear your take on this situation. These open-ended questions call for a discussion in the comments down below!