• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Business and Economics Economics

5 indications that the UK economy is on the brink of a collapse

Economic experts have today suggested the UK should reverse Brexit in order to avoid the severe consequences of a messy breakup. The Organisation for Economic Co-operation and Development (OECD) published a report that puts forward the case for a dramatic rethink on the agenda. Its findings have already been hailed as the “final nail in the coffin […]

Jack Peat by Jack Peat
2017-10-17 15:38
in Economics, News
FacebookTwitterLinkedinEmailWhatsapp

Economic experts have today suggested the UK should reverse Brexit in order to avoid the severe consequences of a messy breakup.

The Organisation for Economic Co-operation and Development (OECD) published a report that puts forward the case for a dramatic rethink on the agenda.

Its findings have already been hailed as the “final nail in the coffin for the already long-buried notion that Brexit will benefit our economy”.

But even with EU negotiations stalled there are growing signs that the UK economy is on a shaky grounds.

The International Monetary Fund recently raised growth forecasts for all advanced economies aside from the UK in its twice yearly benchmark World Economic Outlook. The Washington-based organisation cited a slump in private consumption and a dramatic tumble in the value of the pound weighing on household spending.

But even the IMF’s downbeat forecast for the UK could be too optimistic. Here’s five indications that an economic collapse could be imminent for the UK.

ONE: A savings crisis looms

A report released today has warned that a savings crisis could be in our midst with a third of UK employees saving less than £50 a month and one in five not saving anything at all. The Lifetime Savings Challenge Report 2017 confirms that many people are struggling to get to the end of the month on their current pay packet, with many on the brink of financial collapse.

TWO: Brexit threatens to close access to key markets

RelatedPosts

Russell Brand is ‘a narcissist, borderline psychopath and definitely a sociopath’ – Gordon Smart

Tory MPs have been paid nearly £350k for GB News appearances this year

‘Inspired by the Wild’ project transforms London street into urban jungle

Recession ‘more likely’ as key gauge misses expectations

Tariffs on imports and exports between the EU and UK could wipe tens of billions of pounds off UK economic growth, according to the OECD. A hard Brexit or no-deal could strangle key trade routes, see business investment withdrawn and make our current account deficit harder to finance. Heightened price pressures would also choke off private consumption, sending the economy into a downward spiral.

THREE: We don’t have as much money as we thought

Shock figures released by the Office of National Statistics (ONS) show that Britain is £490 billion poorer than was thought. Britain’s stock of wealth has fallen from a surplus of of £469 billion to a net deficit of £22 billion. The UK has totally lost its reserve of foreign assets, and is actually in a much more vulnerable deficit, losing any safety margin just Theresa May’s government is attempting a breakthrough in a crucial stage of Brexit negotiations.

FOUR: Inflation is hitting the nation’s spenders

Inflation hit a five-year high of 3 per cent this week, with a weak pound expected to continue pushing that up. Lower income families are likely to have been hit the hardest by price rises since Brexit due to the rise in the price of food and non-food essential items, which they spend disproportionately more on. The inflation squeeze on these families is likely to strangle the amount of money being circulated in the economy.

FIVE: Interest rate rise could tip us over the edge 

Borrowers on variable rate mortgages could collectively have to pay millions of pounds more in mortgage payments by December if the Bank of England chooses to raise the base rate by 0.25 per cent. New research has revealed an interest rate hike could deal a final blow to many people living on the edge, replicating the sub-prime mortgage crisis of 2007.

RELATED 

https://www.thelondoneconomic.com/news/politics/now-political-mainstream-jeremy-corbyns-labour-party-conference-speech-full/27/09/

https://www.thelondoneconomic.com/news/pictures-economic-collapse-islamic-state/13/09/

https://www.thelondoneconomic.com/news/britain-ranked-fourth-micro-business-dense-country-world/16/10/

Tags: headline
Previous Post

“Maybots” descend on Parliament Square for GMB’s end of public sector pay pinch rally

Next Post

Hillary Clinton says “won’t run again” in 2020 Presidential race against Donald Trump

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

More from TLE

Avanti West Coast and CrossCountry handed new contracts

Four ways to know if you’re being gaslighted at work

Telegraph dubs PM’s net zero address his ‘best speech ever’

Russell Brand denies ‘criminal allegations’ ahead of Channel 4 Dispatches

New study reveals the hidden impact Brexit had on EU families who left the UK

Taskforce needed to address “heartbreaking” disputes over care of critically ill children

Sunak convenes Cabinet as he prepares to water down net zero plans

Labour would seek ‘much better’ Brexit deal from Brussels – Starmer

Labour and Tories neck and neck in Mid Bedfordshire, poll suggests

Financial Authority finds no evidence of politicians being ‘debanked’ over views

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




-->