Impact of Covid19 on UK.docx - Impact of Covid19 on UK The...

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Impact of Covid19 on UK...The UK economy has experienced a significant shock since the start of thecorona virus (COVID-19) pandemic and the GDP has fallen dramatically. InApril 2020, UK confronted the largest fall in GDP as the GDP fell by 20%.This fall was more than three times larger than last month and almost tentimes larger than the steepest pre-pandemic fall. The main reason of thiseconomic downturn is the imposition of nationwide lockdown. Anestimation done by McKinsey & Company shows that in a typical lockdownweek in May, 2020, the economic activity was down roughly 30% compareto the pre-pandemic levels. (And) According to the Office of NationalStatistics (ONS), almost 75 percent of businesses had temporarily closedor paused trading and around 20 percent of businesses that continued totrade reporting a fall in revenues. Such a rapid fall in output hassignificant implications for employment. McKinsey claims that duringlockdown, around 8 million jobs were at risk due to permanent and

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