Social care is the sector most likely to recover in 2021 from a UK economic downturn according to commercial property specialists Instant Offices.
The ‘Industry Bounce Back Post Covid-19’ analysis found health and social care would be the sector least affected by the crisis, with predictions pointing towards recovery starting from July following relaxed lockdown measures.
Instant Offices said the health and social care sector is expected to experience a 6% increase in GVA (gross value added) in 2021.
“Due to the high demand for services, the health & social sector…is likely to see increased economic productivity or GVA,” it said.
Instant Group cited a recent EY report, which forecast UK GDP to contract by 6.8% in 2020 with forecasts suggesting the economy will start to recover in the third quarter as restrictions relax.
“Despite a gloomy GDP outlook for most countries, we are slowly seeing companies resume business operations in most areas of China, which is an encouraging indication,” said Instant Group marketing lead John Williams.
“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,” he added.
