Covid-19 Recovery | Which industries will bounce back quickest?
The coronavirus pandemic has had a huge impact on both employers and employees.
Back in March when UK Prime Minister Boris Johnson enforced strict lockdown measures, many businesses were temporarily forced to shut up shop. As a result, some staff were let go while others were placed on furlough due to a lack of work. In addition, several reports have pointed towards the economic impact that the coronavirus pandemic has had on the UK.
For example, last month the Guardian reported that the British economy is predicted to shrink by eight per cent this year and is unlikely to recover until 2023, a leading economic forecaster said.
With that being the case, some businesses and sectors in the UK may find it more difficult to get back on their feet for some time. Recent data analysis from the commercial property specialists, Instant Officers, has looked into the sectors that have been the most and least affected by the pandemic and are mostly likely to bounce back quicker. As was reported in Business News Wales, the education and utilities sectors have largely been able to continue working remotely which could insinuate a slightly speedier bounce back. In addition, the pandemic has seen a high demand for services, health and social care and public admin sectors therefore suggesting that they are both likely to see increased economic activity.
Yet, on the other end of the scale, the hospitality and transport sectors are more likely to see an impact to their overall productivity and output levels, which will result in lower gross value added (GVA).
Commenting on the data analysis, John Williams, Head of Marketing at The Instant Group, said that the uncertainty has squeezed all sectors, yet “we’re also seeing unprecedented levels of innovation emerge from the crisis”.
In addition, the data analysis also shed light on the UK regional GVA recovery in 2021. For example, London’s GVA is set to be the least affected due to its largely service-based economy, while the East of England is set to have a slow recovery in its large construction sector will see GVA reduce by 10% in 2020.
“The good news is the scale of recovery across most UK regions in 2021 will be similar to contractions in 2020, indicating that as most sectors start to recover, local economies could make up for lost ground. The economy is not set to return to its 2019 size until 2023, however, slow bounce back is expected across the board as consumer demand increases post-COVID-19, and global economic activity starts to ramp up,” Williams added.
Source: Executive Grapevine