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Retail Savings & Investments in the UK: Coronavirus (COVID-19) Sector Impact

April 2020 | 21 pages | ID: RE48E86E2E9FEN
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Retail Savings & Investments in the UK: Coronavirus (COVID-19) Sector Impact

SUMMARY

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 year-to-date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and many experts predicting the potential onset of recessionary environments.
A similar trend is expected in the UK as well, as economic growth in the country is expected to register a dip in the first quarter of 2020 and will decelerate further if this disease is not controlled at the earliest. The decline will have an adverse impact on all sectors including retail investments.
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.

SCOPE
  • The UK retail savings and investment market is forecast to contract by 4% in 2020, before recovering in 2021.
  • Equity and mutual fund holdings will suffer the most as declines of 18% and 20% 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 has cut interest rates to a historic low of 0.1%.
  • Most industries in the UK will be negatively affected by the coronavirus pandemic. The retail and hospitality sectors, which together contribute over 10% to high-net-worth (HNW) wealth, are expected to take a strong hit as the country remains 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.
COVID-19 Update
Impact Assessment
Retail Savings and Investments
Retail Bond Holdings
Retail Deposit Holdings
Retail Equity Holdings
Retail Mutual Fund Holdings
Others
Appendix
Supplementary Data
Definitions
Methodology
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