+1-888-308-5802     
News Contact Us

Bank of England: UK households to face £33 billion annual economic hit

Author : Pankaj Singh | Published Date : 2020-09-08 

Bank of England has reportedly stated that United Kingdom will face an £33 billion hit to the economy annually post COVID-19 outbreak.

Changes in people’s lifestyle due to the pandemic has resulted in structural shifts in the economy which can have a long term impact on the employment as well as GDP growth of the country, stated Bank of England’s governor Andrew Bailey.

According to the governor, the behavioral changes in people, such as being cautious before going out and inclination towards working from home will decrease the country’s GDP by 1.5% every year, which is lower than the predicted rate. The sum equates to over £1,200 per household on the basis of 2019 output.

If sources are to be believed, the loss in income is likely to be as a result of the mismatch in employee skills. After the pandemic, few industries like hospitality and retail are likely to witness huge job losses as compared to others. Whereas other sectors are estimated to face shortage of qualified applicants, which will further lead to an increase in unemployment rates and economic slowdown in the U.K.

Mr. Bailey also claimed that the structural changes is a matter of concern, considering these changes will lead to long term scars on the economy. He further added that it can result in high unemployment rates for long periods of time.

Dave Ramsden, Deputy Governor at Bank of England mentioned in a comment that the conditions are worse than estimated. He added that the next phase of recovery initiatives will give a clear idea about the scale of impact on the labor market and the level at which UK economy is recovering.

Source credits –

https://www.independent.co.uk/news/business/news/uk-economy-coronavirus-bank-england-andrew-bailey-household-incomes-a9701676.html

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

President Trump questions ByteDance's move to retain majority stake

Published Date: 2020-09-18         Author: Pankaj Singh

The American President Donald Trump has reportedly raised questions about plans by ByteDance Limited to keep most of the stakes in US operations of popular short video platform TikTok after six Republican senators requested him to reject the deal. Mr. President said that he would be informed on T... Read More

Chinese tech giant Tencent to open its new regional hub in Singapore

Published Date: 2020-09-16         Author: Pankaj Singh

Tencent Holdings, the renowned Chinese technology conglomerate, has reportedly announced that it has selected Singapore as its new regional hub as well as beachhead for the Asian market. Through this, the company has joined its rivals, ByteDance Ltd., and Alibaba Group Holding Ltd., as they look to ... Read More

$100 Mn Raised to Help Melbourne Recover from the COVID-19 Pandemic

Published Date: 2020-09-15         Author: Pankaj Singh

Daniel Andrews, Premier of Victoria announced that the City of Melbourne and the state government will jointly raise a $100 million city recovery fund to help the arts and cultural communities and small and medium-sized businesses recover from the COVID-19 pandemic effect. This summer, the restau... Read More

© 2020 Fractovia. All Rights Reserved