UK Economic Growth At 0.1% – What Does This Mean for The Rest Of 2022
Between Brexit and a global pandemic, the UK economy has been dealt a rough hand. The latest figures show the UK’s economic growth is only at 0.1% making it one of the largest economies to not recover from the dramatic events of the last few years.
But what does this mean for households and what can we do to bolster our savings, or at the very least protect them?
Is The UK In a Recession?
Despite the ongoing Ukraine crisis, most Western European countries have seen their economies grow – albeit at a slightly slower pace. Of course, just as the UK was seeing post-pandemic growth, this new crisis brought with it rising gas prices.
Whilst we’re not currently in a recession, experts believe that the disappointing growth in GDP, the ongoing Brexit calamities, uncertainties in government, and of course, the growing influence of Russia, demonstrates the fragility of the economy.
But all is not lost. The travel and tourism sector saw a slight rise, as people clamour to book holidays both domestically and across borders, whilst it’s estimated inbound visits are forecast to increase to 21.1 million, in part thanks to the reduction in Covid restrictions.
How To Protect Your Savings
During times of financial hardship, it’s important to try and protect your savings, and where possible grow them.
Pay Off Debt
During times of recession, you should try and address your debt first and foremost to avoid paying higher rates. If you have a large amount of debt, address the debt with the highest interest rate first.
If you do not have enough liquidity to pay off your debts, try and move your debts to a cheaper rate.
Build Up Cash
Once you’ve begun paying off your debts, if you have cash left-over, consider building up an emergency cash-fund. Using an easy-access savings account will provide you with somewhere safe to keep your cash. Whilst it might not offer the greatest APR, it will provide you with quick access to funds should you need to pay an unexpected bill.
Consider Alternative Investments
If you’re already into investing, you might want to consider alternative methods of investment like spread betting. Commodities such as gold, are a great spread bet choice during downturns in the economy.
Keep Investing for The Long Term
Whilst the cost of living is increasing, and people’s balances may be taking a hit, where possible keep investing in long-term, low risk stocks in everyday items like tea bags.
