Sheffield news UK faces longest recession since financial crash PremierLeague-News.Com
PremierLeague-News.Com - The Bank of England is predicting a recession in the UK will begin later this year.
PremierLeague-News.Com - Breaking Sport Transfer News ! The UK is heading towards a recession, the Bank of England has warned. It is expected to be the worst recession since the financial crash of 2008. The economy is measured by its GDP - its gross domestic product - which increases with the value of its goods and services. When the GDP increases, citizens can become slightly richer. A recession is what happens when a country’s economy is persistently declining for two quarters in a row. The last time the UK faced this was in 2020, at the height of the coronavirus pandemic. Read more: Dawn Walker murder trial live as verdict on killer husband nears Why is a recession important? The economy is crucial to the smooth running of day-to-day life in our country. When the economy grows and does well, people do too. Usually, there are more jobs and companies are able to pay workers and shareholders more. It also means that there’s more money for the government from taxes, which allows for increased spending on government services, public sector pay and benefits allowances. However, when the country goes into a recession, there isn’t scope for these things. This means the economy goes in reverse. Are we in a recession? The Bank of England has warned that the country will plunge into a year-long recession this autumn. It warns that households will be hit by the deepest fall in living standards on record.
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. The Bank predicts a decline of almost 1% in the size of the economy in the last three months of 2022 and thinks it will shrink in every quarter of 2023. Inflation is predicted to now peak at 13.3%, up from the current all-time-high of 9%, in the final three months of this year as average energy bills treble from £1,200 in 2021 to £3,500 by October.
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Related Articles Sheffield city centre's 'Container Park' arrives as big screen and new shops land on Fargate What does a recession mean for people? Some people may lose their jobs, find it hard to secure a pay rise or get a promotion. Jobs could be harder to find as firms curb spending as costs increase. Those in receipt of benefits may find a recession hardest as incomes barely change but bills, particularly energy bills, get more expensive. What does a recession mean for house prices? The housing market has been rampant ever since the height of the Covid pandemic when people taking out a mortgage took advantage of low-interest rates and a stamp duty holiday, but a recession could finally put the brakes on it. That actually boosted property prices as working from home encouraged both house movers and buyers in a race for space.
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Related Articles Huddersfield man Mark Hirst accused of trying to smuggle 57 puppies into England There’s a possibility that the recession could help some people onto the property ladder if it pushes prices down. It would lead to smaller deposits being needed and lower amounts borrowed in total but must be compared with rising mortgage rates. Property website Rightmove calculated that first-time homebuyers would see their monthly mortgage payments climb to an average of 40% of their gross salary after this week's rate rise. It calculates that the average monthly mortgage payment for a new homeowner will increase to more than £1,000, up from £813 in January. However, warnings that inflation is set to climb even higher will pile more pressure on those saving for a deposit while grappling with a cost-of-living squeeze. Read more Your Money stories here Read next: Afghan refugee's anger at living in Yorkshire hotel for a 'wasted' year Jake Manglewurzel's Huddersfield home goes up for sale with his body buried in the garden Scarborough hotel where guests urinate in public and take pictures through neighbours' windows barred from opening beer garden ITV Good Morning Britain's Ben Shephard forced to apologise for guest's rude slip-up The multi-million pound scrapyard in a Huddersfield valley run by a dad and his four children
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