The current economic climate is (if you hadn’t realised) less than favourable. Figures released today show a lack of growth in the most recent quarter, going against some predictions of growth.
The continuing saga regarding the ‘Euro-zone’ crisis, plus global demands, has left economies stagnating somewhat and not heading in the planned upward direction.
The British Chambers of Commerce (BCC) have cited a ‘disturbing’ domestic decline and has said that the conditions for export are the worst since the companies were in the midst of the recession in 2009. And whilst the statistics do indicate a minor growth of 0.3%, that does little to warm the cockles of many business peoples hearts.
The current government’s plans to aid the recovery have inevitably received a major blow with this news, and BCC director general John Longworth has expressed his feelings that the government need to readdress the tactics used to aid the UK’s financial growth in order to ensure the economy pulls away from such negative and stagnated statistics.
The statistics point to a lack of investment by major companies due to the fragile economic state at present. Self-preservation is paramount to many companies, rather than investment that may come back to haunt them in a climate where security is minimal.
An estimated £4.7 billion of investment has been delayed or cancelled by companies in recent times, chiefly due to the insecurities raised by the constant stream of negative headlines surrounding the economy, which has created these preservatory tendencies within the business world.
BCC chief economist David Kern pointed the finger of blame for this economic stagnation at the government, saying that the powers at be ‘must reprioritise its spending plans to promote growth and wealth creation’.
This climate of fear currently proliferating within the business world is dramatic need of being quelled by new techniques or governmental projects, otherwise it is hard to see an end to the eminent negativity surrounding such topics as the economy.