The Insidexpress
  • Business
  • Lifestyle
    • Fashion
    • Beauty
    • Home Decor
    • Home
    • Interior Design
    • Foods & Culinary
    • Dating & Relationships
    • Health
    • Pets & Animals
    • Spirituality
    • Sports & Athletics
    • Travel
  • Entertainment
    • Celebrities
    • Gaming
    • Movies
    • Music
    • TV
  • Financial
    • Loans
    • Insurance
    • Stocks
  • Industrial
    • Auto & Motor
    • Career
    • Education
    • CBD
    • Construction
    • Real Estate
    • eCommerce
    • Legal
    • Essay Writing
    • Gambling
    • Vaping
  • Technology
    • Digital Marketing
    • SEO
    • Cryptocurrency
    • Software
    • Metaverse
    • NFT
    • Web Design
    • Wordpress
  • News
    • Basketball
    • Golf
    • Horse Racing
  • Business
  • Lifestyle
    • Fashion
    • Beauty
    • Home Decor
    • Home
    • Interior Design
    • Foods & Culinary
    • Dating & Relationships
    • Health
    • Pets & Animals
    • Spirituality
    • Sports & Athletics
    • Travel
  • Entertainment
    • Celebrities
    • Gaming
    • Movies
    • Music
    • TV
  • Financial
    • Loans
    • Insurance
    • Stocks
  • Industrial
    • Auto & Motor
    • Career
    • Education
    • CBD
    • Construction
    • Real Estate
    • eCommerce
    • Legal
    • Essay Writing
    • Gambling
    • Vaping
  • Technology
    • Digital Marketing
    • SEO
    • Cryptocurrency
    • Software
    • Metaverse
    • NFT
    • Web Design
    • Wordpress
  • News
    • Basketball
    • Golf
    • Horse Racing
The Insidexpress is a centralized magazine for Lifestyle, Fashion, Beauty, DIY, Interior Design, Health, Relationships, Travel, HowTo & more.
Recent Posts
  • Refreshing and Relaxing: THC-Infused Seltzers 1
    Refreshing and Relaxing: THC-Infused Seltzers
    • 09.05.25
    • 3 min
  • From Classic to Unique: Exploring Different Types of Beads for Your Next Bracelet 2
    From Classic to Unique: Exploring Different Types of Beads for Your Next Bracelet
    • 08.05.25
    • 3 min
  • How Video Production Services Bring Creative Ideas to Life 3
    How Video Production Services Bring Creative Ideas to Life
    • 20.12.24
    • 2 min
  • Crypto30x.com: Your Path to Smart Crypto Investments 4
    Crypto30x.com: Your Path to Smart Crypto Investments
    • 16.12.24
    • 17 min
The Insidexpress
  • Business
  • Lifestyle
    • Fashion
    • Beauty
    • Home Decor
    • Home
    • Interior Design
    • Foods & Culinary
    • Dating & Relationships
    • Health
    • Pets & Animals
    • Spirituality
    • Sports & Athletics
    • Travel
  • Entertainment
    • Celebrities
    • Gaming
    • Movies
    • Music
    • TV
  • Financial
    • Loans
    • Insurance
    • Stocks
  • Industrial
    • Auto & Motor
    • Career
    • Education
    • CBD
    • Construction
    • Real Estate
    • eCommerce
    • Legal
    • Essay Writing
    • Gambling
    • Vaping
  • Technology
    • Digital Marketing
    • SEO
    • Cryptocurrency
    • Software
    • Metaverse
    • NFT
    • Web Design
    • Wordpress
  • News
    • Basketball
    • Golf
    • Horse Racing
  • Financial

Will Economic Conditions in the UK Improve or Deteriorate in 2022?

  • July 6, 2022
  • 3 minute read
Will Economic Conditions in the UK Improve or Deteriorate in 2022?
Total
0
Shares
0
0
0
0
0
0
0

We’ve reached the mid-point of 2022 and financially speaking, it has been a turbulent time for British households. 

Here’s a summary of recent economic news which has hit the headlines and has ratcheted up the pressure on family finances: 

  • In June 2022, the Bank of England announced that it was raising interest rates to 1.25%, a level not seen for over a decade. 
  • In the same month, the ONS announced that inflation had hit 7.9%, meaning that household goods and services had increased by this percentage on average compared to one year prior. 
  • Earlier in the year, the same statistics body had announced that GDP (a measure of UK economic output) had actually fallen by 0.3% during the month of April. Offering a potential glimpse at the future, this indicated that the economy actually contracted during this month.

This article looks at economic indicators in the UK to make a personal prediction of how the economy of Britain and Northern Ireland will behave each we reach the end of 2022?

How could the UK’s economy change over the next six months?

Let’s look at a few key economic indicators; GDP, inflation and employment rates and consider how each could move and what impact this could have on UK households. 

A recession is on the cards

A recession is when the economy shrinks. Economies enjoy growth in most years, therefore a recession represents a dramatic and negative turn of events. 

When a technical recession occurs, this sends a signal to business owners and decision-makers within organisations that their behaviour may need to change. The decisions they make can then further reduce economic activity and therefore the recession becomes more pronounced and extensive. 

For example, a chain of restaurants may be considering whether to open a new location in a city they haven’t previously expanded into. This will involve a significant initial outlay, and the business will only want to commit the risk capital if they expect a positive return. 

When the threat of the recession looms on the horizon, this (quite understandably) makes the business more pessimistic about the outlook for the new location, and its chances of being approved as a business plan take a hit. The impact of businesses deciding not to invest further entrenches the lack of growth. 

Inflation looks to be very persistent

The rate of inflation began to pick up in late 2021 but was turbocharged by the knock-on effects of the war in Ukraine. 

Ukraine was a major exporter of key food commodities such as wheat, and Russia supplies a large portion of European energy needs in the form of natural gas and oil. The political situation has blocked or threatened supply of each, resulting in the market prices for these basic commodities to skyrocket in the last few years. 

Higher energy and food costs have a secondary effect on a range of goods and services, including restaurants, groceries, heavy industry and construction. In simple terms, the price of virtually everything has been increasing, meaning that the pounds in your bank account are simply not worth the same as they were a few months ago.

Furthermore, the Bank of England expects that inflation could top 11% before the end of the year, reports the Guardian. This spells trouble for anyone on a fixed salary or pension, as that same wage will now only be able to buy 9/10ths of what it could last year. 

Employment rates may hold

Bank of England expects a jump in the unemployment rate to 5.5%. This contrasts to its current level of 3.8% per the Office for National Statistics. 

The impact of higher unemployment can be quantified, but its effects are difficult to truly sum up with figures and charts. After all, employment for many people is the source of much of their pride, and provides them with a productive way to spend their week. For young people, their first job is a validation of the effort they have spent during school, college and university. 

When the unemployment rate increases by 1% or 2%, this may sound like a marginal change, but beneath the percentage are tens of thousands of people who have been denied the opportunity to gain fulfilling employment, through no fault of their own. 

The effects of unemployment include poverty and budgetary sacrifices in the household, anxiety about when a source of income will return, and uncertainty about accommodation. In short, becoming unemployed for the longer term can place a lot of strain on families. 

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Share 0
Share 0
Share 0
Share 0
Octavia Specter

You May Also Like
Understanding the Tax Implications of Buy-to-Let Mortgages
View Article
  • 3 min
  • Financial

Understanding the Tax Implications of Buy-to-Let Mortgages

  • June 27, 2024
View Article
  • 3 min
  • Financial

Avoiding Credit Card Scams

  • May 2, 2024
Validating the Legitimacy of a Debt
View Article
  • 3 min
  • Financial

Validating the Legitimacy of a Debt

  • March 22, 2024
Revolutionising Investing: The Ultimate Guide To A Free Demat Account And The Best Stock Market App
View Article
  • 4 min
  • Financial

Revolutionising Investing: The Ultimate Guide To A Free Demat Account And The Best Stock Market App

  • January 31, 2024
How do Savings Account interest rates get determined?
View Article
  • 2 min
  • Financial

How do Savings Account interest rates get determined?

  • January 31, 2024
What is difference between lumpsum and SIP?
View Article
  • 3 min
  • Financial

What is difference between lumpsum and SIP?

  • January 31, 2024
Keeping Track Of Bills And Payments
View Article
  • 3 min
  • Financial
  • Loans

Keeping Track Of Bills And Payments

  • December 9, 2023
How a Bristol Mortgage Broker Can Help You Secure the Perfect Property
View Article
  • 3 min
  • Financial
  • Real Estate

How a Bristol Mortgage Broker Can Help You Secure the Perfect Property

  • May 28, 2023
Table of Content
  1. How could the UK’s economy change over the next six months?
  2. A recession is on the cards
  3. Inflation looks to be very persistent
  4. Employment rates may hold
Things you might like
The Insidexpress
  • Home
  • Contact Us

Input your search keywords and press Enter.