It is clear that as we grow closer to Brexit, the UK’s economy’s growth is slowing. In 2018, the British economy grew by 1.4% which is the weakest increase since 2012 and it looks to slow further this year too.
In recent months pay growth has rebounded. This has helped to support the all-important consumer spending. In late 2018, the only drivers of the UK’s economy were household spending and government policy. In this year, business investment and net trade slowed on growth.
Warnings were urged by, Mark Carney, the Bank Of England Governor who said that the world economy was facing some of the same issues that the UK were facing. He said: “Normally when expansions are reliant on the consumer, you start watching the clock, in terms of how much longer it will last.”
With 14 million people living in poverty in the UK, can the British economy successfully continue to rely on consumer spending?
Executive Chairman of FairMoney, Dr. Roger Gewolb, provides the following commentary: “The British economy may be being held up by consumer spending currently, but with 14 million of the UK living on the breadline and with nearly a quarter of Brits having loans or credit card debts of over £1000 this is untenable. Household debt is at its peak with UK homes now owing an average of £15,400 to credit card firms, banks and other lenders. This indicates that spending will have to stop at some point and the British economy will need diversification in order to thrive.
If people do need to access credit, cash-strapped Brits have been subjected to some of the worst lending practices in recent memory. Millions of people are being pushed towards high-interest credit options despite average or good credit. We must protect our communities and consumers, reprimand bad lenders and strive for borrowing practices that are fair for all.”