US economy declines for first time since 2020 as UK business failures hit 60-year high

US economy declines for first time since 2020 as UK business failures hit 60-year high

The world’s largest economy contracted by an annualised rate of 1.4% in the first three months of this year. The sharp drop follows growth of over 6% in the final quarter of 2021.


America is experiencing the highest inflation for 40 years, reduced government spending and supply chain disruption from lockdowns energy in China.


Despite this, analysts are not predicting a full-blown recession.


Business insolvencies in England and Wales jump to 60 year high.


Rapid increase in voluntary liquidation is driven by inflation and supply chain difficulties. Rising costs for necessities such as oils and home energy are sucking cash out of consumer pockets, which means less money to spend on eating out and small luxuries.


World Bank warns of human food catastrophe and war causes shortages and soaring prices.


Food prices are now at the highest rate since UN Food Index tracking records began 60 years ago after jumping 13% in March.


Food commodity prices were already at a 10 year high before the war in Ukraine.


Even in a wealthy country like the UK, the numbers of people using food banks is rising sharply according to anecdotal evidence.


The office for National statistics reported that nearly one in five people are now borrowing more than they did a year ago and 43% say they will not be able to save money in the next 12 months.


This means higher personal debts and lower savings for millions of people.


UK inflation is now running at 7% per annum, up from less than 1% in February 2020.


What does inflation mean to you?


The costs of goods and services has risen by 49.4% since 2010, which means you need £14,936 to have the same buying power as £10,000 in 2010.


Your £10,000 in 2010 would needed to have grown by 3.4% per year just to keep pace with inflation, according to figures based on the Retail Prices Index (RPI). Source: Hargreaves Lansdown.


If your money was on deposit in the bank over this period the chances are your money has not kept pace with inflation and will only buy you half the amount you could have bought in 2010.


If you have invested your money in a well performing managed fund or in a decent property your money will most like have kept pace or outstripped inflation giving you a real rate of return.


Stock Markets jittery


Stock markets in Europe and Asia fell sharply this week at n fears of Chinese lockdowns but later recovered.


Strict lockdowns in China are affecting millions of people, which is slowing down manufacturing of goods needed by western economies.


House prices still rising in the UK


A shortage of family homes continues to drive up demand despite recent interest rate rises.


3 quick tips to GET CONTROL of your finances in times of rising prices.


  1. Get control of your outgoings and expenditure.


Knowing what money is coming in and where it’s going to keys to get in control of your finances. In my S.M.A.R.T Money training I show you how to immediately get control of your finances.


  1. Get control of debt.


Mental health and finances are closely linked according to the Mental Health Policy Institute.

Pay down the debts with the highest interest rate.

Never ignore debts and I was asked for help or advice. In the UK there are organisations offering free advice, like Citizens Advice, the National Debt Line and the Samaritans.


  1. Get control of spending.


Make small cuts in many different areas.

Rather than try to cut out one big item, tried to make savings in multiple areas.

Earn more than you spend

Look for opportunities to earn more money. For instance, a part-time job or a side-line business.

Also check out my ‘5 Inflation-Busting Tips’  for money saving ideas to help you through this. –

Make the most of your money and resources and learn how to get control and manage your finances.

Consider investing in real assets which tend to hold their value and act as a hedge during times of high inflation.

Assets like property, stock and shares and gold have long been held as a long-term inflation hedge.

Remember, you are not alone. Get help, take advice, and use debt counselling services like Citizens Advice if you are having trouble.

Can you take proactive steps to increase your wealth?

Do people get rich during recessions and depressions?

The answer is yes!

To help you get through this and come out stronger at the other end I am offering subscribers a free MONEY MASTERCLASS.

Join me for an intimate Money Masterclass this Wednesday

The NEW WAY to build your wealth, IMMEDIATELY GET CONTROL of your money and learn how you can become FINANCIALLY FREE in 28 days using my S.M.A.R.T MONEY FORMULA!

With inflation at a 30-year high there has never been a better time to join me for this brand new Money Masterclass!

I am inviting a small group of people only to join me this WEDNESDAY 7PM for an intimate S.M.A.R.T Money Masterclass!


Secure your seat now!

Post a Comment

#Follow us on Instagram