The UK economy’s plight: How the UK compares to other countries following the Covid GDP drop.
Earlier in the pandemic, the UK’s Gross Domestic Product (GDP) fell by more than 2%, but how does this compare to other countries, and which country’s GDP has been most affected by Covid?
Since the Covid pandemic began in early 2020, it has had a variety of effects on economies all over the world.
Many have faced unprecedented challenges as a result of countries opting for full lockdowns, forcing businesses to cease operations entirely.
As a result, the value of each country’s GDP was affected. Now, as we approach the second anniversary of the pandemic’s start, how has the UK’s GDP been affected?
Between 2019 and 2021, the value of the UK’s GDP fell by 2.1 percent, according to The Economist.
The information pertains to the fourth quarter of 2019 – just before the Covid pandemic was declared in the United Kingdom – and the third quarter of 2021.
GDP is a metric that measures the size and health of a country’s economy over time.
Every financial quarter of the year, this metric is typically recalculated.
The drop in the UK’s GDP demonstrates the economic impact of Covid.
The UK was not alone in experiencing a drop in GDP value when compared to other nations.
The GDP of Italy, Canada, and Japan all fell by more than 1%.
In fact, with a -6.6 percent difference, Spain’s GDP fell more than three times faster than the UK’s.
Despite Covid’s financial consequences, the value of GDP in some countries increased during the same time period.
Ireland was the biggest winner, with a 22.3 percent increase in GDP.
According to the Central Statistics Office (CSO), Ireland’s exports increased by 9.5 percent in 2020, totaling nearly €500 million (£418.22 million).
Imports fell 7.4% as well.
This resulted in a €76 billion (£63.57 billion) increase in net exports over the previous year.
Chile, with a growth rate of 10.4 percent, was the country with the next-highest GDP growth.
Norway’s and Poland’s GDP increased by more than three percent, to 3.5 and 3.1 percent, respectively.
Sweden and Denmark, two more Scandinavian countries, also saw positive growth.
Both countries’ GDP increased by 2.1 percentage points.
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