[Infographic] UK’s Financial Forecast: What Experts See on the Horizon

The UK’s economic pulse has been relatively subdued since 2005, with annual growth rates averaging a mere 0.73% compared to the historical average of 2.1% since 1970. A substantial portion of household wealth, 52%, is tied up in real estate, with pensions and land accounting for 30% and 14% respectively. Real wealth, particularly in equities, has outperformed disposable income growth, with equities yielding a real return of 4.6%.

The fiscal landscape is marked by under-taxation relative to other affluent countries, leading to significant budget deficits. Moreover, political instability is evident with ministerial turnover averaging eight months in office. This turbulence hinders long-term policy implementation and undermines investor confidence.

Brexit’s financial impact is now emerging, with the average Brit facing a decrease in wealth by £2,000 and Londoners by £3,400. The Labour Party aims to pivot the economy towards growth, aspiring to a 2% rise in real GDP, supported by an increase in productivity and a strategic industrial policy focused on private sector investment.

Real incomes are finally showing signs of growth after a decline over the past years, and the government has introduced a £100 billion stimulus package. Labour’s supply remains a pressing concern, emphasizing the need for businesses to innovate and potentially replace labor with technology to maintain competitiveness. For more information, please refer to the info-graphic below.

[Infographic] UK’s Financial Forecast: What Experts See on the Horizon