Countries all over the world are suffering from inflation and recession due to the impact of the coronavirus. However, economic experts have said the UK might escape it if proper policies are put in place.
UK’s economy to avoid another recession
The impact of the coronavirus pandemic has continued to harm the UK economy, but indices in December were different. The lockdown imposed in most regions has contributed a lot to these economic issues.
The decline though was not as huge as expected as various businesses opened but followed lockdown rules like social distancing and using of face shields. On Friday, there is a 2.7% monthly economic reduction figure that was the first since June but less than the average forecast in a financial poll by an economist.
It was also less than May 19% decline collapse during the first lockdown. “ Generally, the adjustment to lockdown protocols means the economy will not suffer as the first thought” according to the CEO of capital Economics, Mr. Paul Dales.
Brexit compounds UK economy issues amidst lockdown
The world’s fifth-biggest economy suffered more than other nations in 2020 and is now 8.4% lower than, and it was last February before lockdown. A tougher lockdown was initiated this January and may let the UK economy contrast during the first quarter in 2021.
This may or may not be unconnected with the post-Brexit trade problems with the EU. “ It is apparent that things will get difficult before they get better and these economic figures show. A statement credited to Minister of Finance, Rishi Sunak.
However, all is not gloom as Britain has seen a rise in vaccine distribution which is the best in Europe and this has filled economic experts with hope. They have warned that Britain could be at the risk of another recession if proper policies are not put in place in the first three months of 2021.