New Year - New Hope?
Introduction
New year - new hope. Or so one would anticipate after a reasonably grey financial year in 2007. However, the outlook for 2008 is comparatively bleak, with early warning signs pointing at what appears to be a challenging year.
Rising inflation will see the cost of living increase, which will in turn reduce consumption and slow GDP growth. This was already apparent over the Christmas period with a large number of High Street retailers reporting poor trading and a general decrease in sales.
The slowing housing market has been the most evident indication of a tough year ahead. Although more interest rate cuts are predicted in the near future, they are unlikely to prevent a dramatic decline in what has been a steady 10-year increase in house prices. As a result, many homeowners will find it necessary to cut back on spending in order to meet rising mortgage repayments.
The sudden transition from a high to a more cautious level of risk-taking will also have an impact on economic growth. With an increasing number of investors reluctant to take the level of risk deemed acceptable over the last few years, and moneylenders reluctant to part with their money as readily, there will be an inevitable knock-on effect on the financial market. This will have implications for businesses and therefore a tough year ahead is predicted.
A stark reminder of the country's financial situation is that unemployment is at its highest for the last 10 years. With bleak prospects for the UK job market, personal insolvencies are set to soar, with some 130,000 predicted in 2008. This figure represents a 300% increase over the last 4 years.
Should anyone have any concerns they are advised to seek specialist advice as soon as possible. Ashfords are well placed to assist with financial problems encountered by both individuals and businesses
Ashfords is regulated by the Solicitors Regulation Authority. The information in this article is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.
