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HomeBusinessCorona crisis: the UK is an epochal crash the economy threatens

Corona crisis: the UK is an epochal crash the economy threatens

Normally you have to pay for a Big Mac in London is a good three pounds. But in August, the Burger only costs half. This special offer has not thought about McDonald’s, but the British government. “Eat out to help out” is the name of the program, with the Chancellor of the exchequer Rishi Sunak consumption in the United Kingdom wants to boost. Anyone who buys from Monday to Wednesday at one of the participating Fast-Food chains, restaurants, or bakeries for something to eat, will receive a discount of 50 percent – but only up to an amount of ten pounds. The discounted price the company received from the Ministry of Finance will be refunded. More than 80 000 companies are doing it; the government has provided for the action to 500 million pounds (equivalent to approximately 553 million euros).

When it comes to the economic impact of the Corona-crisis, to accuse the British government a lot, except for one: a lack of ingenuity. It is especially the Minister of Finance of Rishi Sunak, the breaks since the outbreak of the pandemic with economic policy Beliefs more liberal Tories and is trying to support the economy with government intervention. The Multi-billion packages are also urgently needed, because Britain is crash in front of an epochal Economy. The Bank of England is predicting the deepest recession for more than 300 years. Even now, the data are alarming: The statistics office the ONS that the UK economy slumped in the second quarter to 20.4 percent – more than in Italy or Spain.

As the main reason for the devastating number of researchers is sub-Economic, the in the beginning undecided the government’s response to the pandemic. While other European States had already imposed a Lockdown, put Britain first, on the concept of herd immunity. Therefore, should infect as many young and healthy people with the Virus, so as to form a kind of immunity protection for the Old and Vorerkrankten. As the number of Covid-19-cases in the UK, always dramatic rise, the government said on 16. March Major Events. A week later, the country-wide Lockdown, then followed. In no European country more people have to Covid-19 died in the United Kingdom. According to the government, the number of dead now stands at more than 41 000.

No wonder that the authorities in Downing Street during the Shutdowns getting more and more cautious. While in Germany and other European countries could be re-fed in restaurants, remained British Pubs and Restaurants closed. Only since the beginning of July, they have opened up again. The UK’s important services sector almost came to a Standstill. Not only the restaurants, the retail trade and other Service-providers had to shut down their business a good three months to a large extent. However, even now the same parts of the City of London is still a Ghost town. Because most of the employees work in the financial center of the British capital further from home, remain closed, many Sandwich shops and Restaurants. Where bankers met prior to the pandemic, to Lunch, to hang today, signs on the doors: “Closed”.

Out of fear of losing the Job, have reduced many Britons their consumption to a Minimum. How strong is the crisis on the labour market through, it will show the latest in the fall. By the end of October, the British model of short-time work is still running. The government paid the employer’s share of social security contributions and 80 percent of the monthly salaries of employees, up to a limit of 2500 pounds (the equivalent of about 2750 Euro).

More than nine million Jobs will be secured at the moment. Now this support will be reduced. Since this month, the companies need to pay again for the social security contributions of their employees. In September and October, ten percent of the salary added to this is the. In November, the state then withdraws completely. The Bank of England expects a doubling of the unemployment rate from 3.9 percent to 7.5 percent until the end of the year. Given this forecast, the government has decided an already-leaked support program for the self-employed this week to re-launch the programme. After the political summer break, the receivables are likely to be louder, to extend the British workers on short-model.

For the year as a double shock: a Corona and a hard Brexit threatens

The statistics OMS that already 730 000 people March have lost until the end of July their Job. Especially, the aviation industry has made the Corona-crisis. British Airways has decided a reduction of 12 000 jobs. In the case of Easyjet 4500 jobs are to be cut, the competitor Virgin Atlantic, there are more than 3000. Also in the British car industry, a lot of Jobs fall away: Jaguar Land Rover, Bentley and Aston Martin have all announced similar plans. Similar projects there are in the oil Industry, as well as financial service providers and large banks.

What remains is the hope that the economy in the third quarter picks up again, if also behavior. The government and Central Bank are ready though, continue to intervene and provide support, but it is already clear that the UK is experiencing this year a record budget deficit: The Budgetamt OBR expects more than 320 billion pounds (the equivalent of 354 billion euros). This corresponds to around 16 percent of the gross domestic product.

How strong is the UK economy’s performance falls in fact, depends not only on how the country coped with the Corona-crisis. At the turn of the year, a hard Brexit threatens also. Can some of the negotiators in London and Brussels on a free trade agreement, should trade organisation, WTO, and thus high tariffs apply between the UK and the EU from 2021 to the rules of the world. On Monday, the talks between Brussels and London were in the next round. From negotiating circles, it was said, however, that to expect this week, no breakthrough is.

Jerry Rolon
Jerry Rolonhttps://etrendystock.com/
After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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