So this one is going to be a little bit different than the usual blogs. I am talking about a switch from sustainability to economy. A lot of you may have heard or seen the word recession flashing by during your day and wondered what that actually means? Because if I have to be honest, I have no clue what the definition of that term is. So, with the help of google, friends and newspapers, I am going to try to explain to my audience what exactly is coming our way in the UK.
What is it?
The Gross Domestic Product is the net value of all products and services provided by a country over a period of time. It is basically a percent that acts as the status symbol of the country in comparison to others. However, when this value along with other economical aspects starts to decline over two successive quarters in a year, is when the country is said to be going into recession. The trades reduce, unemployment rates increase, and a drastic toll is taken onto daily lives.
How is this going to affect UK?
The government claims that by the end of 2022, United Kingdom will be hit by recession due to the drop in GDP to 3.3% from a whooping 7.4% in 2021. Worse still is that fact that even though the country is going into recession, its currency is facing heavy inflation, making it difficult for the citizens to fight to antagonizing effects together. This could result into several people losing their jobs or finding it difficult to get promotions. Normally, riots and crimes also tend to increase during a recession as this period affects different people in a different manner and to different extents, which typically leads to all sorts of inequality.
Tips on how to deal with recession.
There are ways that can help you come out of this phase successfully. To state the obvious, cutting back on daily/weekly expenditure. Saving up money by thinking twice before buying things can really help in the long run. Meal deals or fast-food chains? Thrift stores or retail outlets? Small changes can lead to a bigger difference. Secondly, make sure that you have cheapest deals for gas and electricity and internet. Weigh out your usage and pick the best one there is to offer. There is no need to pay for more than you actually consume. And definitely, get set for emergencies. The one thing that recession teaches us is that you never know what may happen tomorrow and it is always safer to have a thick cushion of savings always there for you to fall back on.
This year may have already been hard on some people and could get worse for others. Irrespective, it is important that we help each other out during these dark days. All the googling and reading has scared me a little but at the same time given me some really thoughtful ideas for my upcoming expenditures. Share some of your best money saving tip in the comments!