Economy watch - should we spend more?
- By Jack Preston -
- May 28, 2012
My Virgin Money Magazine’s independent financial expert, Tony Hazell, has focused his latest ‘Economy Watch’ on the impact on the economy our reluctance to spend has had. If you’ve had to put holiday plans or other expenditure on hold, then chances are you’re in good company.
“A recent survey claimed that 33 million Britons had "put life on hold". Some had put off retirement for five years while others had waited an extra two years before having their first child. Official figures show that families were hit by a bigger fall in their disposable income during 2011 than in any year since 1977,” explains Hazell.
“So let’s get one piece of bad news out of the way. The UK has once again entered recession. A recession is when the economy shrinks for two consecutive three-month periods. Provisional figures show the economy shrank by 0.2 per cent in the first three months of this year. This is in addition to the 0.3 per cent shrinkage in the last quarter of 2011.”
Whilst Hazell’s blog can at times make for painful reading, there are some bright spots on the horizon this month, as he gives some positive news on job prospects, possible economic growth and whisky sales – yes, whisky.
“Whisky lovers have been doing their utmost to support the Scottish economy. Whisky exports from Scotland rose to a new high of £4.23 billion last year, an annual increase of 23 per cent. The US and France are the biggest importers. Cheers!”
If you’d like to learn what shape Hazel thinks the economy will be in come the end of the year, as well as how the changes will affect you, visit My Virgin Money Magazine.