{"id":5414,"date":"2022-04-20T13:29:04","date_gmt":"2022-04-20T12:29:04","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/04\/20\/news-in-review-52\/"},"modified":"2022-07-05T14:28:14","modified_gmt":"2022-07-05T13:28:14","slug":"news-in-review-52","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/04\/20\/news-in-review-52\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u201cWe are facing a crisis on top of\na crisis\u201d<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

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Speaking in Washington DC prior to the release of the International Monetary Fund\u2019s (IMF) biannual World Economic Outlook this week, Managing Director Kristalina Georgieva previewed her thoughts on the global economy. Opening her speech, she declared, \u201cTo put it simply: we are facing a crisis on top of a crisis\u2026 First, the pandemic: it turned our lives and economies upside down – and it is not over\u2026 Second, the war: Russia\u2019s invasion of Ukraine, devastating for the Ukrainian economy, is sending shockwaves throughout the globe.\u201d<\/em><\/strong><\/p>\n<\/div>\n\n

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Initially focusing on the\nhuman tragedy of the invasion and displacement of over eleven million people,\nshe went on to speak about the far-reaching consequences of the war, in\nparticular inflation, which she described as \u201ca clear and present danger for\nmany countries around the world.\u201d<\/em> Given\nthe war\u2019s direct impact on Russia and Ukraine, and global ramifications, the\nIMF now projects global growth of 3.6% in 2022 and 2023, a reduction of 0.8 and\n0.2 percentage points from the January forecast. Warning that the forecast was\nmarked by \u2018unusually high uncertainty,\u2019<\/em> the outlook highlighted that\nfurther sanctions on Russian energy and a widening of the war, combined with a\nsharper deceleration in China and a flare-up of the pandemic, could further\nslow growth and intensify inflation, while rising prices could trigger social\nunrest and lead to the fragmentation of the world\neconomy. <\/p>\n<\/div>\n\n

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Although the UK is expected to be the joint-best\nperformer in the G7 this year, its economic growth was downgraded to 3.7% this\nyear from 4.7% predicted in January, with further growth downgrades predicted\nin 2023.<\/p>\n<\/div>\n\n

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UK inflation soars <\/strong><\/strong><\/p>\n<\/div>\n\n

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Latest inflation data released by the Office for National Statistics\n(ONS) last Wednesday, showed that the Consumer Prices Index (CPI) rose by 7% in the 12\nmonths to March 2022, up from 6.2% the previous month, representing the highest\nrate of inflation in 30 years. Fuel had the biggest impact on the rate, with average petrol prices\nrising by 12.6p per litre between February and March, the largest monthly rise\nsince records began in 1990; this compares to a 3.5p per litre rise between\nFebruary and March 2021.<\/p>\n<\/div>\n\n

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Senior Economist at the Resolution\nFoundation, Jack Leslie, commented on the latest findings,\n\u201cInflation last month reached levels not\nseen since the early 1990s, but it is still well below the price pressures\nfamilies are currently experiencing with the recent energy price cap likely to\nhave taken inflation up to over 8% in April. <\/em>With wages not keeping pace, he warned Britain\u2019s cost-of-living\ncrisis was \u201con track to be the biggest\nsqueeze since the mid-70s\u201d <\/em>and\n\u201c<\/em>will continue to worsen before it\nstarts to ease at some point next year.\u201d<\/em><\/p>\n<\/div>\n\n

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He continued, \u201cThe sheer scale of this inflation-led\nsqueeze on living standards makes it all the more remarkable how little support\nthe Chancellor provided in his Spring Statement \u2013 a decision that will surely\nhave to be revisited before the Autumn Budget.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

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House\nprice growth<\/strong><\/p>\n<\/div>\n\n

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According to data from real estate consultancy Knight Frank, it is\nexpected that annual house price growth will reach 5% in 2022, before slowing\nconsiderably to just 1% in 2023. It is\nanticipated that the combination of more housing stock and the full force of\nhigher mortgage rates will cause demand to slow. Head of UK Residential\nResearch at Knight Frank, Tom Bill, commented, \u201cWe are seeing a strong start to this year, with house price growth\nstill in double digits. In 2023, the whole calendar year will be in a different\nplace – higher mortgage rates will start to kick in, and we\u2019ll start to see a\nmore balanced supply and demand situation.\u201d<\/em><\/p>\n<\/div>\n\n

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Markets<\/strong><\/strong><\/p>\n<\/div>\n\n

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Prior to the bank holiday\nweekend, Europe\u2019s markets climbed on news that the European Central Bank (ECB)\nintended to continue with its dovish monetary policy stance to wind down its\nstimulus plan. ECB President Christine Lagarde commented, “The downside\nrisks to the growth outlook have increased substantially as a result of the war\nin Ukraine\u2026 We will maintain optionality, gradualism and flexibility in the\nconduct of our monetary policy.” <\/em>Following the long weekend, the IMF\nforecast weighed on global market sentiment, as did China\u2019s latest data release showing\na fall in consumer spending\nand rising unemployment. On Tuesday, the FTSE 100 closed down 15.1 points at\n7,601.28.<\/p>\n<\/div>\n\n

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Here\nto help<\/strong><\/p>\n<\/div>\n\n

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Financial advice is key, so\nplease do not hesitate to get in contact with any questions or concerns you may\nhave.<\/p>\n<\/div>\n\n

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The value of investments can\ngo down as well as up and you may not get back the full amount you invested.\nThe past is not a guide to future performance and past performance may not\nnecessarily be repeated.<\/strong><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u201cWe are facing a crisis on top of a crisis\u201d Speaking in Washington DC prior to the release of the International Monetary Fund\u2019s (IMF) biannual World Economic Outlook this week, Managing Director Kristalina Georgieva previewed her thoughts on the global economy. Opening her speech, she declared, \u201cTo put it simply: we are facing a crisis […]<\/p>\n","protected":false},"author":12,"featured_media":6729,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,112],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/5414"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=5414"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/5414\/revisions"}],"predecessor-version":[{"id":6695,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/5414\/revisions\/6695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/6729"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=5414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=5414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=5414"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=5414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}