The recent financial crisis has had a major impact on countries the world over. This has left the UK, and British consumers, managing debt.
The effect of deregulation and neoliberal economic policies is particularly evident within Europe. Within the EU and Eurozone specifically, the rebuilding and restructuring of economies is taking its toll on populations. As economies are linked, a consensus on an outlook for the next decade has not been easily reached.
With the turmoil reaching unprecedented levels in Greece and Italy, the media focus on economic recovery has centred somewhat on the nations within the Eurozone. However, it has now become clear that countries such as the UK are feeling the pain as a result of the failure of a number of Eurozone economies.
For the average UK citizen, money has become tight and as many traditional loan products do not cater to individuals who are the most vulnerable, this puts many Brits in a dire position. Luckily, lenders have begun to recognise this gap in the market and there are increasing opportunities for consumers to compare unsecured loans.
Ernest & Young’s M&A Tracker recorded a 14% decline in takeovers and mergers in the UK since the beginning of the crisis. The figure took a real hit when Greece’s default appeared to be looming – which is in-line with global trends.
It isn’t all doom and gloom, though. The Financial Times reported a 20% increase in the mean size of deals done in the UK to $264 million — a more promising increase than those around the world.
Analysts are suggesting that these figures show signs of increased confidence amongst investors. Despite large scale hiccups in the markets at the end of last year, particularly within Europe, this increase in the size of completed deals sends a clear message about buyer confidence.
The FT also reported that the proportion of cash deals had increased by 3% to 91% — compared to the global average of just 55%. This indicates comfort within those sectors involved in such transactions.
The state of affairs in the UK has undoubtedly been harmed by the severity of the debt in a number of the Eurozone countries. Despite their exclusion from the common currency, the UK’s economy is still heavily reliant on the state of those within Europe, and indeed the world over, and that means European economic trends are often reflected on home shores.
That said, the UK’s economy is recovering at a far better pace than many others and budget adjustments to begin in the next financial year are aiming at attracting large businesses to the UK. A crop in the 50p rate of tax is hoped to justify its potential damage to financial inequality by securing the move of a high enough number of large businesses to the country which is expected to give a considerable boost to the economy.