 covid 19 s impact on economy covid 19 s impact on economy barsha mar 28092021 1201 the coronavirus pandemic has affected human lives in many ways from getting locked in our own houses to people losing their lives this coronavirus outbreak has a substantial economic impact on nearly every country the economy of the united kingdom was also affected by the outbreak the effect of lockdown rules which have resulted in the closure of several businesses in order to minimize mobility has been disastrous for the uk economy the scale of the economic downturn brought on by the outbreak is unmatched in contemporary history in 2020 the gdp of the uk fell by 98 the sharpest loss since the year 1948 when the record started and the largest in over 300 years according to some estimates in april 2020 during the first lockdown the gdp of the uk was lowered by 25 than it had been in february 2020 the economy began to perk up in the summer and spring signaling the economy s opening and restrained demand from the very first lockdown in april 2020 during the first lockdown the gdp of the uk was lowered by 25 than it had been in february 2020 the economy began to perk up in the summer and spring signaling the economy s opening and restrained demand from the very first lockdown in november a second lockdown occurred which was shortlived but resulted in yet another monthly drop in gdp the restrictions were temporarily relaxed in the following month but tighter lockdowns had been reintroduced in january 2021 due to the new virus strain driving higher corona infection rates another drop in gdp as a result of this all of the key elements of monthly gdp were below prepandemic levels in february 2021 the major cause of this drop was dropin services which were 88 lower in february 2021 than they were in february 2020 although the service industry has yet to return back to the prepandemic level there are certain industries that have been hit worse than others such as the areas of transportation accommodations entertainment travel agencies arts manufacturing dropped by 42 in february 2021 than in february 2020 which was the largest contributor to the drop in production since production has not returned back to the prepandemic level certain industries that are hit more as compared to others are coal and lignite mining aviation and spacecraft manufacturing coke and refined petroleum production even though the gdp was dropping the economy has been seen to be adapting effectively with a significantly lower drop in economic output in early 2021 as gdp dropped by 25 in january when compared with spring 2020 lockdown in march 2021 uk s gdp was 6 below what it had been prior to the outbreak this coronavirus outbreak has a substantial economic impact on nearly every country the economy of the united kingdom was also affected by the outbreak the effect of lockdown rules which have resulted in the closure of several businesses in order to minimize mobility has been disastrous for the uk economy the scale of the economic downturn brought on by the outbreak is unmatched in contemporary history in 2020 the gdp of the uk fell by 98 the sharpest loss since the year 1948 when the record started and the largest in over 300 years according to some estimates in april 2020 during the first lockdown the gdp of the uk was lowered by 25 than it had been in february 2020 the economy began to perk up in the summer and spring signaling the economy s opening and restrained demand from the very first lockdown in april 2020 during the first lockdown the gdp of the uk was lowered by 25 than it had been in february 2020 the economy began to perk up in the summer and spring signaling the economy s opening and restrained demand from the very first lockdown in november a second lockdown occurred which was shortlived but resulted in yet another monthly drop in gdp the restrictions were temporarily relaxed in the following month but tighter lockdowns had been reintroduced in january 2021 due to the new virus strain driving higher corona infection rates another drop in gdp as a result of this all of the key elements of monthly gdp were below prepandemic levels in february 2021 the major cause of this drop was dropin services which were 88 lower in february 2021 than they were in february 2020 although the service industry has yet to return back to the prepandemic level there are certain industries that have been hit worse than others such as the areas of transportation accommodations entertainment travel agencies arts manufacturing dropped by 42 in february 2021 than in february 2020 which was the largest contributor to the drop in production since production has not returned back to the prepandemic level certain industries that are hit more as compared to others are coal and lignite mining aviation and spacecraft manufacturing coke and refined petroleum production even though the gdp was dropping the economy has been seen to be adapting effectively with a significantly lower drop in economic output in early 2021 as gdp dropped by 25 in january when compared with spring 2020 lockdown in march 2021 uk s gdp was 6 below what it had been prior to the outbreak the coronavirus pandemic has affected human lives in many ways from getting locked in our own houses to people losing their lives  