Retail Savings and Investments in the United Kingdom (UK) – (COVID-19) Impact Snapshot
- Pages: 21
- Published: June 2020
- Report Code: GDFS0363CI
The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.
Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year to date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and experts predicting the onset of recessionary environments.
A similar trend has been seen in the UK, with economic growth in the UK registering a dip in the first quarter of 2020. The UK is among the most highly affected countries, with total confirmed cases of 306,761 at the time of writing and the number still on the rise. With the government now easing the lockdown measures in a phased manner, a gradual recovery in the economy and a rise in consumer spending may be seen. However, controlling the active cases will remain challenging.
This report focuses on the impact of the Coronavirus outbreak on the UK economy and the country’s retail savings and investment market. It also highlights the measures adopted by the government to combat COVID-19. Based on our proprietary datasets, the snap shot contrasts GlobalData’s pre-COVID-19 forecasts and revised forecasts of total retail bond, deposits, equities and mutual funds holdings in terms of value and growth rates. It also analyses the effects on HNW wealth, examining the importance of different industries as a contributor to HNW wealth.
– The UK retail savings and investment market is forecast to contract by 4.5% in 2020, before recovering in 2021.
– The easing of restrictions and the slowing infection rate in the wider region sent positive sentiments across stock market investments, resulting in the stock market index increasing slightly from the beginning of April. While the index recorded positive growth, this bullish trend is expected to be short-lived in light of growing uncertainties relating to a second wave of the virus, which will affect stock market performance and thus retail holdings over the forecast period. Consequently, equity and mutual fund holdings will suffer the most, as declines of 19.5% and 21% respectively are forecast for 2020.
– Investors should not expect to make gains as they move wealth into safer assets such as deposits and bonds, as the UK government plans to move towards a potential enactment of negative interest rates.
– Most industries in the UK will remain negatively affected by the coronavirus pandemic. The retail and hospitality sectors, which together contribute over 10% to high-net-worth (HNW) wealth, took a strong hit as the country remained in lockdown. In fact, several businesses in these areas have already been forced into administration as a result of the pandemic.
– Although startups in the technology sector may struggle, the industry as a whole is poised to be the least affected. The focus of businesses across many industries will be on improving their digital services and e-commerce channels. The government, too, is seeking help from technology companies. This will support the tech-related wealth generation.
Reasons to buy
– Make strategic decisions using top-level revised forecast data on the UK retail savings and investments industry.
– Understand the key market trends, challenges, and opportunities in the UK retail savings and investments industry.
– Receive a comprehensive insight into the retail liquid asset holdings in the UK, including deposits, mutual funds, equities, and bonds.
Table of Contents
Table of Contents
Retail Savings and Investments
Retail Bond Holdings
Retail Deposit Holdings
Retail Equity Holdings
Retail Mutual Fund Holdings