Businesses From Companies In The UK Are Predicted To Recover In Semester II 2021

Illustration. (Photo: Unsplash)

JAKARTA - The COVID-19 pandemic has hit nearly half of large-scale companies in the UK. However, a Deloitte survey of international accountants estimates that the businesses of these large companies will recover in the second semester of 2021 from the COVID-19 pandemic.

Reported by Reuters on Monday July 20, Deloitte has interviewed 109 top finance officials from various companies. The survey took place from 26 June to 8 July 2020.

Based on the survey results, it was stated that as many as 49 percent of finance officials from both large companies and most of the public companies said that the business would recover in the second half of next year.

Meanwhile, another 33 percent of officials expect recovery to occur in the first half of 2021. And 10 percent of the 33 percent of officials said business was reviving.

The survey also discusses other issues in the business world, such as a panel entitled the Bank of England as a decision maker. There, it shows that companies are working to anticipate the impact of COVID-19.

Deloitte's chief economist Ian Stewart said companies were disappointed about job prospects, investment and the added risk to their balance sheets. Big companies were expecting long results for income levels before the COVID-19 pandemic.

Meanwhile, the manufacturing trade body Make UK asked the government to extend the work leave scheme, which expires at the end of October 2020 for six months for key industrial sectors.

Stephen Phipson, Chief Executive Officer of Make UK said the Bank of England scenario published in May shows the economy is regaining its pre-pandemic size in the second half of 2021, but evidence of a recovery needed is still scant.

"At the moment, the pace of recovery with a V-shaped curve for the industry seems a long way off," said Stephen.

Therefore, according to Stephen, if it wants to reduce the worst impact of potential job losses, the government must expand the leave scheme to key strategic sectors. This is done to provide breathing room for these strategic sectors.

The UK economy could shrink by more than 14 percent this year if there is continued damage from COVID-19. Bank of England Governor Andrew Bailey said the UK economy is recovering from the impact of COVID-19, but some labor-intensive sectors remain weak and have unclear long-term prospects.