There
is understandably cause for concern across the land. The last few years have
not been excessively kind to our local economy, which is partly understandable.
We are so interconnected with the rest of the world, that problems halfway
across the globe will still have an impact on us. With major countries such as
the United States and the entire Eurozone having had a wide variety of problems
in recent years, our ability to trade with them effectively has diminished.
Fortunately, the United States is beginning a small but important rebound, but
the Eurozone continues to be stuck in neutral.
Actually,
it's worse than neutral. According to recently published reports, the overall
economies in the Eurozone have contracted for three consecutive quarters. It
only takes two consecutive quarters for the trend to be deemed a recession. So,
unfortunately, we can now say that the Eurozone is officially in a recession.
Not that that is surprising news to anyone who tries to export products made in
the UK across the Channel. Several of the major countries, such as Spain and
Italy are going through economic convulsions and demand has dropped off
significantly. Now, even Germany and France are beginning to go backwards,
which does not bode well for anybody.
A Lukewarm Economic Spring
Fortunately
England doesn't count only on Europe for its economic survival. There is a
robust internal market, as well as a long-standing relationship with the United
States and even parts of the Pacific Rim. As a result, despite the problems
that Europe is struggling with, the UK can expect a slight, but important
economic growth pattern in 2013. Granted, there are many variables at this time
which could affect the ultimate outcome substantially. If conditions in Europe
worsen, which is not completely out of the question, it could have a negative
impact on the UK. If the modest economic recovery that United States is
enjoying should stall, that too would have serious consequences for our local
economy.
Looking For Viable Markets
Many
experts in the UK are also counting on the Pacific Rim region to boost exports
from the UK. This is a somewhat dangerous gambit, as China continues to grow at
a snail’s pace, and Japan appears to actually be sliding into a recession
itself. The UK cannot count on its own economy for growth unfortunately. With
the average household spending power limited by an unemployment rate which is
close to 8%, a lot of the retail spending that fueled the economy a decade ago
just isn't there anymore, at least not for the moment.
Therefore,
many experts feel that UK overall can expect a growth of only 1% this year.
That does not leave a whole lot of margin for error, as described above. We can
only hope that our trading partners are able to get their economic house in
order, so that we may continue to prosper.
Chris
Harlepp is a US-based lifestyle writer covering some of the latest trends in
modern consumer habits and tendencies, such as researching how to sell your house fast.
He writes on a freelance basis for many of the major lifestyle blogs.
