The British economy has often been one of the strongest in the world, especially when compared to many other nations and based on its relatively smaller size. However, with many developing nations possessing improving economies, the ongoing effect of the global financial crash and future uncertainties, the current British economy isn’t as stable as it once was. Therefore, now is the best time to secure your financial future using financial planning services for a number of reasons.
GDP Growth and Interest Rates
In 2016, UK economic growth has slowed down after making a good recovery in the few years before. For example, in the third quarter it only experienced 0.5% GDP growth. While certain industries have continued to perform well, including the services sector, others have fared less well, like the construction and manufacturing industries.
In fact, the services industry has been the main reason behind any growth the UK economy has recently experienced. Such low growth could be offset by a hike in interest rates, although GDP is predicted to rise a little bit in the final quarter for 2016.
The biggest news story and factor affecting the British economy has been Brexit. Once the result has been announced the economy immediately reacted, with the pound falling to its lowest level in 30 years. Since then it has experienced a lot of downs, although with it clear that Brexit will be happening it has introduced some level of stability. However, as the negotiations are ongoing it remains unclear what will exactly happen, leading to many overseas less willing to invest in the UK until the precise leaving action is confirmed.
Trade and Outsourcing
Trade deals look set to be rearranged with the USA now that they will have a new president in 2017, as will trading with the rest of Europe once the UK leaves the EU. This could improve or worsen trade for the UK, we will have to wait and see what the outcomes of such negotiations are.
Part of the reason for the lower growth for UK GDP is due to outsourcing as well, with manufacturing deals reached with China and the selloff of Tata Steel leading to poor manufacturing figures. If these types of thing are set to continue then it will prove harder for UK GDP to recover. Therefore, it is more important than ever to plan for your financial future and secure your savings as the UK economy remains somewhat unpredictable.