{"id":6511,"date":"2022-06-15T10:18:37","date_gmt":"2022-06-15T09:18:37","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/06\/15\/news-in-review-59\/"},"modified":"2022-07-05T14:09:48","modified_gmt":"2022-07-05T13:09:48","slug":"news-in-review-59","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/06\/15\/news-in-review-59\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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The release of\nthe latest Economic Outlook from the Organisation for Economic Co-operation and\nDevelopment (OECD) last week, highlighted that global GDP is now projected to\nslow this year to around 3%, remaining at a similar pace next year. This is a\ndowngrade following estimates of 4.5% global growth this year, made last\nDecember. Outlining the situation, the OECD deduce \u2018<\/strong>The war has set the global economy on a\ncourse of slower growth and rising inflation – a situation not seen since the\n1970s.\u2019<\/em><\/strong><\/p>\n<\/div>\n\n

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Aptly entitled \u2018The\nPrice of War,\u2019<\/em> the report outlines the far-reaching impact of the invasion\nin Ukraine and its role in triggering a global cost-of-living crisis. Before\nthe war, the global economy was on track for a strong, although uneven,\nrecovery from the pandemic. According to\nthe report, inflation projections currently stand at almost 9% for OECD\ncountries this year, double previous projections. The new\nprojections from the international think tank detail the impact the war is\nhaving on inflation, which has already reached 40-year highs in the UK, US and\nGermany. In fact, data from the US last week pointed to surging levels of\ninflation, potentially paving the way for a series of aggressive interest rate\nhikes.<\/em><\/p>\n<\/div>\n\n

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UK GDP is expected to grow by 3.6%\nthis year, before stagnating in 2023. The OECD expect continuing high\nenergy prices, labour and supply shortages to push inflation to a peak of 10%\ntowards the end of the year, reducing to around 4.7% in Q4 2023. In response to the OECD projection for the UK growth\nforecast, a spokesperson from HM Treasury responded, “While we can’t\ninsulate the UK from global pressures entirely, our economy is in a strong\nposition to deal with these challenges. We have a plan for growth, and we are\nsupporting people with the cost of living.” <\/em>It is expected that a\ntight labour market will support consistently low unemployment statistics. <\/p>\n<\/div>\n\n

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Data from the Office for National\nStatistics (ONS) released this week showed that UK GDP shrank by 0.3% in April,\nthe first month that all main sectors (manufacturing, construction and\nservices) contributed negatively to GDP since January 2021. The decline was\nprimarily triggered by the reduction of the NHS Test and Trace programme, which\nfell by 70% in April as tests ceased to be free. <\/p>\n<\/div>\n\n

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Accelerating the energy transition<\/strong><\/p>\n<\/div>\n\n

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In the report, OECD Chief Economist and Deputy Secretary-General,\nLaurence Boone outlined his thoughts on the need for governments to \u2018shift\ngear\u2019<\/em> to speed up the energy transition, \u2018Limiting Russia\u2019s ability to\nfinance the war, as is intended by an embargo on Russian oil exports, is\nessential for speeding up an end to this devastating conflict.\u2019<\/em> He continued, \u2018The emergency\nresponse to a possible energy crisis has turned out to be a stark scramble for\nalternative sources of fossil fuels and to increase coal use. This can only be\ntemporary as it is the opposite of what the world needs, which is a rapid\nincrease in investment in, and consumption of, cleaner energy.\u2019<\/em><\/p>\n<\/div>\n\n

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Central\nbanks \u2013 time to decide<\/strong><\/strong><\/p>\n<\/div>\n\n

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The World Bank has cautioned that\na period of high inflation and tepid growth is threatening to ‘derail what\nis now a precarious recovery,’<\/em> citing it would be ‘hard’ <\/em>for many\ncountries to avoid recession. The warning comes as the European Central Bank\nhas signalled an end to its pandemic-era money-printing programme, paving the\nway for the first interest rate hike in eleven years. This week the Bank of\nEngland and the US Federal Reserve will conclude their latest monetary policy\nmeetings. It’s time to decide whether they too should lift interest rates even\nhigher to tame inflation or resist as the economy slows.<\/p>\n<\/div>\n\n

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UK housing market records 10.5% annual price growth<\/strong><\/p>\n<\/div>\n\n

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The Halifax House Price Index has\nshown that average house prices have risen 10.5%\nin the year to May, to a new record of \u00a3289,099. Although the eleventh consecutive month of increases, the pace\nof growth has started to moderate, from the 10.8% (in the year) recorded in\nApril.<\/p>\n<\/div>\n\n

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

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Financial\nadvice is key, so please do not hesitate to get in contact with any questions\nor concerns you may have.<\/p>\n<\/div>\n\n

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

The release of the latest Economic Outlook from the Organisation for Economic Co-operation and Development (OECD) last week, highlighted that global GDP is now projected to slow this year to around 3%, remaining at a similar pace next year. This is a downgrade following estimates of 4.5% global growth this year, made last December. Outlining […]<\/p>\n","protected":false},"author":12,"featured_media":6514,"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\/6511"}],"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=6511"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/6511\/revisions"}],"predecessor-version":[{"id":6512,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/6511\/revisions\/6512"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/6514"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=6511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=6511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=6511"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=6511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}