Will the UK avoid a triple dip recession
The question that is foremost in the minds of many financial professionals is whether or not the UK will avoid a triple dip recession. In the announcement that is expected on Thursday the UK is projected to narrowly escape a triple dip recession in the keenly awaited figures.
GDP is anticipated to have edged up by 0.1% in the first three months of the year, which would mean the economy avoided returning to a recession for a third time since the economic crash of 2008.
Although on the surface such results seem positive the reality that is facing many business owners across the country is still the same. The reality is that whether or not the economy has contracted for second quarter in a row is quite trivial and it distracts attention from the bigger, more dismal picture.
The picture facing the wider UK economy is quite distressing. Consumers are squeezed, the cost of living is rising, salary increases are stagnant and confidence is low. The recent years have also been tough for businesses big and small around the globe. The financial downturn, which many regard as a depression, has affected every business in some way regardless to how prepared they may have felt prior to such financial hardships.
The unprecedented force of the global economic crash has resulted in some notable ‘fatalities’ such as the high street giants of HMV, Blockbuster and Jessops all falling victim. The tough financial environment hasn’t taken any prisoners which case studies such as the fall of Woolworths (2009) have proven.
Most businesses will acquire some level of business debt at one point or another. Such normally comes in the form of a business loan or a business overdraft. Such debt is usually attained in order to allow the business to grow and develop in the desired way through prepared business strategies targeting healthy levels of growth; however such ‘debt’ becomes an issue when a business’s income no longer allows for them to meet the repayments.
It is understandably a difficult process for many business owners to come to terms with financial complications that could ultimately result in the closure and end of the entire entity. Despite this it is essential that professional help is acquired sooner rather than later because such will ensure a smooth journey through all of the pressures. Furthermore professional advice could lead to a complete turnaround of your business and not certain forgone closure.
