2012 is predicted to be a tumultuous year for the UK economy. The threat of a double dip recession and the lack of economic growth are just some of the reasons that forecasters are worried about the year ahead – and that’s despite it being another year of celebrations for UK citizens.
Along with the Olympics, the Queen is set to celebrate her Diamond Jubilee in 2012. Whilst this is certainly something that will boost morale and generate some much needed excitement and enthusiasm across the country, it doesn’t necessarily translate to an improvement in productivity and growth. On the contrary, the extra bank holiday to celebrate the Queen’s Jubilee actually means the country’s GDP will be down.
In a similar way that the Royal Wedding affected productivity last year, analysts predict the same will happen when we have an extra bank holiday for the Diamond Jubilee this year. This means for the second quarter of 2012, growth will be down. However, the third quarter will bounce back even stronger, all thanks to the Olympics and the extra income that this will generate – especially through the £700million expected from tourists.
However, something that analysts are hoping is what’s known as the feel good factor. Despite the extra day off affecting growth, some are hoping that the Queen’s Jubilee will help generate a feel good factor and create a surge in consumer spend. Retailers wait with baited breath as to whether an increase in sales will happen.
The UK economy is made up of three sectors, the primary sector (agriculture and mining), the secondary sector (manufacturing) and the tertiary sector, also known as the services sector. This sector makes up 73% of the UK’s GDP and so it’s vital to the economy. It’s quite broad in its spectrum, but it includes consumerism, so the sale of products and services to consumers. In this sense, it is hoped that the excitement surrounding the Queen’s Jubilee will help get people spending and contributing to this large section of the economy.
The current situation for consumers does not look good though. The amount people are earning is shrinking as wages are either slashed or frozen. Considering the rising loan of living, things like food, fuel and bills, people are having less and less disposable income. So, people are spending less, and are often seeking short term personal loan Singapore solutions, just to help get by from month to month.
This has spawned an ideal climate for short term lending solutions, like payday loan Singapore moneylender Singapore, to flourish. Despite media criticism, these are an ideal way to help pay for the essentials or emergencies, provided the applicant pays the money back (including added fees and interest) on time and in full.
So, the UK economy is set for stagnation, or small growth in 2012. Despite the celebrations surrounding the Queens Jubilee, the extra day off will actually affect GDP; whilst retailers are hopeful that the added enthusiasm will spark an interest in spend, the current climate is actually quite unforgiving because disposable income is not as high as it once was – and this is reflected in the popularity of short term moneylender Singapore such as payday loan Singapore moneylender Singapore.