Economy finances – what would you like to know?
For a start – what does it mean?
In simple terms it’s about how decisions about money are made to make more money. The most critical factor is uncertainty, because financial markets are always changing.
Or, to put it another way, it’s like your personal finances; you know you need to pay off your debts, save as much as you can and protect your future security. However, all of these things might be out of your control if your car breaks down or the central heating fails.
For the UK, one of the biggest financial uncertainties is the outcome of Brexit. On
1 January the Financial Times reported some fairly gloomy views from economists in its annual survey. Forecasts for UK growth are around 1.5% this year with reduced consumer spending and reluctance to invest. However some experts think that the fall in the value of the pound following the referendum will put the country in a strong position for exports.
More recently the National Institute of Economic and Social Research (NIESR) gave a growth estimate of 1.9% for this year, based on the growing global economy and the competitive value of the pound.
UK businesses that are ready to take advantage of worldwide opportunities for goods and services could be in a strong position. While the Bank of England is expected to increase interest rates this year, they are likely to remain relatively low. This will mean that borrowing will remain a viable option for businesses interested in global growth.