In the past months, the UK finance market hasn't been looking up. Growth is very slow and interest rates keep rising. The bank of England cautions that the situation is not likely to improve in the near future. Financial analysts predict that things are likely to get worse and the high rate of inflation is to blame for this situation. Inflation analysts affiliated to the UK report that the markets are not likely to recover since the boosts expected from exports have greatly reduced.
UK finance trade market is also taking a downward trend, UK is importing more than it is exporting and this has caused a huge trade deficit. King's an economist argues that, Britain's future is highly dependent on trade and investment. Many consumers are being held down by taxes which have greatly risen and increased the cost of living hence leaving very little money for investment. Investors have also shied away from putting their money into consumer related industries hence leaving this to the government and the external market. Demand has also been greatly affected leading to low productivity since the cost of raw materials and in overall the cost of production is so high. The economy is hence not producing to its maximum.
Another major player in the UK finance is the job market, which is under siege since it's really being pressured. Statistics indicate that unemployment went up by 35,000 reaching to a subtotal of 2.5 million in the recent months. There is a general trend towards reducing public spending. The greatest costs that companies incur are labor costs, so a pinch in the economy forces them to downsize hence leaving a lot of people jobless. The many graduates flooding the job industry are left without jobs since most companies have resulted only to hire new staff in 2012 that is if the current situation gets better. The few companies hiring new people are doing so on contract basis no one can promise permanent jobs in the current economic crisis. Many of the job cuts have affected the public sector but the private sector does not have the capacity to cause the economy to improve since they are also a victim to the high costs of fuel and oil being experienced hence stifling production.
The UK finance reviews also indicate that stocks are doing very poorly and low investments will bring the country on its knees. We can only hope that the situation gets better in 2012.