Nothing cripples a country like a full-blown financial crisis. Worryingly, the UK has still not wholly recovered from the last financial crisis it faced 11 years prior in 2008, according to many workers who claim they’re earning the same as they were ten years ago. These types of events have resounding consequences and implications for the future.
Of course, this affects everything from the economy to an individual’s personal finances. While people can try to survive with the help of various parties such as Likely Loans, a more permanent solution is clearly needed here not just for one, but for all.
However, due to a combination of factors, 2019 is now considered by some to be the dawn of a new financial crisis. Consequently, here are some of the rationales for these beliefs below.
Brexit
Few people would disagree that Brexit has the potential to wreak havoc on the economy. If the negotiations are executed poorly, the UK will suffer as a result. Shoddy trade deals, EU migrants leaving in mass, business HQs relocating overseas; all of these things are happening, and it all lends credence to the notion of an impending financial crisis.
Of course, there is the possibility that Brexit could pass by with little turbulence at all. Due to all the uncertainty however, people are banking their chips on a more catastrophic outcome. Fear is certainly in the air, and whether Brexit justifies that fear or not in whole remains to be seen.
Housing Prices
Indicators of a forthcoming financial crisis can often be found in the housing market; something of which is rarely ever stable in the UK. Many big name property surveyors have published their recent findings, showcasing one of the most feeble housing markets since seven years ago in 2012. Supply, demand and pricing; they’re all falling at drastic rates.
Many would pinpoint the cause of this to, once again, Brexit. Due to this political turmoil, many people become more guarded with their own personal finances. Of course, if they aren’t spending, things like businesses and property fall by the wayside. They need the funds for fuel, but unfortunately, few are confident enough to splash out on a big spend.
US China Trade War
When two powerhouses of trade clash that largely fuelled global growth, the effects ripple out to the rest of the world. This is what’s happening with the US and China, with President Donald Trump having long critiqued the latter’s trade practices despite being their biggest export for Chinese goods. Moreover, the countries confrontation is constantly escalating, launching billions of dollars’ worth in tariffs on one another.
Every action breeds a retaliation, and it’s stunting lucrative trading not just between the US and China, but just about everyone. When people find the most affordable deals in their own countries, the wanting to trade overseas diminishes. Trump is further threatening more tariffs, and this situation shows no signs of cooling down anytime soon. US and international firms have openly stated that these tariffs have adverse effects on them, and when they suffer, the world suffers in kind.
