How Will Covid-19 Impact Us Financially
How Will Covid-19 Impact Us Financially – When looking at the economic impact of Covid-19 there is no denying that it is being felt around the world. With global economies feeling the effect of lockdown measures and major businesses closed, world governments are having to do more to recover from this. In this article, we will be looking deeper at the impacts of Covid-19 and how long the effects could last.
The Impact Of Global Markets
With 150 countries now suffering from Covid-19, there is no surprise that the economic effects are being felt worldwide. With limited production happening as well as several companies closed due to lockdown restrictions, supply and demand have fallen dramatically. This has therefore meant huge losses for companies worldwide as restrictions mean that people are not out spending their money.
This has not only affected trading overseas, but it has also affected sales in electronics and other sectors that were thriving before the lockdown. One of the prime examples of this sudden drop is the fall in the FTSE 100. The FTSE 100 as fallen a total of 28.8% from January to April 1st. This is a huge drop in value that is only set to continue as lockdown develops.
The Impact On Your Finances
Though the effects of Covid-19 are being felt on the international market, the biggest effects are being felt in our own pockets. With many people receiving money from the government furlough scheme or losing their jobs at this time, finances are tight. Though the furlough scheme does cover 80% of wages there are many of us struggling financially at this time. Though there are ways of reducing costs, a financial emergency at this time can lead to finances becoming tight. If this is the case, there are government schemes and Quick Easy Loans that you can apply for to help you out of financial trouble in the future.
The Effect On The British Economy
Another impact that has been spoken about recently is the economic impact that the virus will have on the UK. With a huge amount of government borrowing and the potential for a 3-month lockdown, there is reason to suggest that the impact can be substantial. Though the length of the lockdown remains unclear, the OBR released a report stating that there could be as much as a 13% drop in the GDP during 2020. This is a huge drop as a direct result of the Covid-19 outbreak.
This has therefore sparked questions for many as to how we will recover from this in the years ahead. This is a question that was asked frequently during the press conference on the 14th April and saw Chancellor Rishi Sunak state that he is confident the UK will recover. In a statement, he also said that he believes the UK is doing “the right thing” to ensure the economy comes out stronger following the pandemic.
However, with the lockdown looking likely to last at least a month more, and finances continue to dwindle, there are many wondering how long the effects will be felt for and whether or not the UK will recover as quickly as many think it will.
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