Despite being battered by the financial storm caused by COVID-19, the United Kingdom appears set on a course to recovery quickly from the drastic recent recession – the worst since records began, according to the Bank of England itself.
With the lockdown temporarily eased, the suffering retail market saw a welcome surge. After several months of shocking damage to the industry, the flood of buyers and browsers in stores once more has eased the numbers on an economy in a dangerous spot. As retail recovers, however, consumers and households live in the real fear of having no income and bills still to pay. What is to be done in such a unique moment in the history of our country?
A resilient economy
The spring in the step of the economy at a time like this is remarkable. Data and market performance appears to be indicating to us that the economy is not in freefall and that the upward trend of over three months has occurred sooner than experts anticipated.
Although shops remain shut and many businesses have closed down or are considering emergency options, the economy as a whole has adapted, with retailers turning to online shopping. This swap to digital-based spending has acted as a stopgap, easing the sudden tanking of revenue associated with the closing and restriction of stores.
Sectors see growth
Some sectors are even reporting positive growth; a welcome sign of recovery. Services and companies in the manufacturing sector have surged, growing at their fastest pace in over five years. The green shoots seen in some areas have been noticed by the government, with the Bank of England firmly stating it will support the economy as best as it can so that recovery may begin in earnest. The GDP is, according to the Bank of England, predicted by experts to rise over 20% in the latter half of this year.
While it’s positive to see the economy recovering, many families are still left hung out to dry in their homes. With furloughs not guaranteed and many jobs simply lost in firings and redundancies, many families are turning to personal loans to help ease their financial issues. Many are unable to obtain the support they need, with many major lenders and brokers freezing or restricting their services in a bid to survive the COVID-induced situation themselves.
Consumer savings, however, are doing well. The massive surge in credit card debt repayment has continued to be watched closely, with many families, couples and adults clearing their payment obligations during the lockdown. Billions have been cleared in a surge in spending noted as remarkable by analysts.
While it’s great to see consumers recovering and being proactive in their handling of debt, it remains unclear as to how long this spike will last. The initial surge of income felt by many households in the UK as retail shut down has now dried up, leaving many worried about spending on anything other than essentials.
In this difficult time, our heart goes out to the adults, families and couples living across the UK. This is a unique and difficult time in our collective history and we wish you the very best in the months ahead. The team encourages you to conserve your money as much as you can and to address spending basics while you have the time, such as the creation of a three-month safety net. With a little proactive work, you can emerge from the uncertainty of COVID-19 in a healthy and robust financial position – a great idea to strive for, we’re sure you’ll agree!