UK economy healthy entering 2018

As we enter 2018, there are signs that the British economy is healthy and should continue to grow in 2018.

When the vote to leave the European Union was announced, some financial experts predicted that this would cause a recession. So far, however, spending has been steady and British manufacturers have been performing well.

There is, however, still uncertainty about the economic effect of leaving the European Union, and this has caused many companies to postpone investments until the deal to leave the EU is clearer.

The economic growth in 2017 was a reasonable 1.5%. Capital Economics, a consultancy, predicts that the growth in 2018 could be as high as 2.2%.

The global economy is also doing well, with the Eurozone recently enjoying its fastest growth since 2011, and this benefits British companies that trade outside the UK.

The Bank of England raised its interest rate in November 2016. The Bank’s Governor, Mark Carney has said that if they rise again, increases will be limited. This will increase loan and mortgage repayments.

Households have seen inflation rise in 2017 without a corresponding wage rise. Wages are expected to grow in 2018, but only marginally.

Households faced with rising prices need careful financial planning and could benefit from wealth management advice that can maximise savings and investments. If Britain and the world economy continues to recover, this could mean that investing in British companies could achieve high returns. An independent financial advisor can help investors find the best ways to invest in Britain’s growing economy.

INVESTMENTS – THE VALUE OF UNITS CAN FALL AS WELL AS RISE, AND YOU MAY NOT GET BACK ALL YOUR ORIGINAL INVESTMENT

Source used: https://www.theguardian.com/business/2017/dec/31/uk-economy-in-2018-steady-growth-tempered-by-brexit-politics