How has Covid-19 really affected the economy and are we in a recession?
The global loss of lives from this pandemic has meant a very tragic 2020. Our economy in the UK is now in a significant recession – a time of great economic uncertainty.
GDP is set to shrink again in the second quarter and the UK government has had to step in to provide support to businesses and employees through various measures. The Treasury estimates the deficit could be as high as £516bn!
This means the Government will have to find ways to recuperate the deficit over the next few years and it is likely that this will be through a host of measures, such as tax increases, VAT increases and freezing public sector pay.