The UK economy is growing again. It’s been a long time coming, but The British Chambers of Commerce (BCC) has released its 2021 economic forecast, and, well, there’s something to smile about for the global market players.
The forecast places UK’s 2021 GDP for 2021 at 6.8%, yes – one of the strongest in record since the first quarter of 1949. Situations are expected to only get better if the restrictions will continue to be relaxed.
The BCC projects the economic situation to get back to the pre-covid GDP of a record 5.1% growth by the first quarter of 2022.
The UK was one of the most affected countries following the novel coronavirus. Despite its clear efforts to make vaccination available, the country still receives high COVID-19 cases, especially after the new strain (Delta variant) made its way into the country.
Fewer Restrictions, More Caution – The Smooth Transition
UK’s move to reopen is a long shot. A lot of good is expected to come out of it, especially as the country recovers from the extended containment measures that crippled the financial markets.
Make-no-mistake, though. These are no Christmas bells. The economy’s full recovery depends entirely and directly on how the Government handles the pandemic, basically the decisions. Still, the UK is keen on preventing the spread of the deadly virus as normalcy resumes.
Just to put all this into perspective, the UK confirmed that the country’s Prime Minister, Boris Johnson, tested positive for the Coronavirus. The acting minister for finance, Rishi Sunak suffered the same fate, too.
If anything, this is just a wake-up call that the country isn’t anywhere near normalcy, at least not yet. And, that more measures should be put in place to prevent further infections, and accelerate the transition to normalcy.
Reopening of the economy is a good thing, crucial to the country’s growth. But, on the third side of the coin is the huge risk of more infections. Presently, the country records up to 40,000 new infections per day.
Financial Markets – Something to Smile About, Yet?
The global pandemic obviously left the financial markets on its knees. The markets are flooded with uncertainty, high volatility rate, and general anxiety. Giant stocks that took over the markets a while ago have had the tables turn on them.
Still, the business investment sector projects a 4.1% growth in 2021 and a subsequent 6.8% growth in 2022. But, don’t get too excited yet. The growth pace might fall to 1.2% in 2023.
So, what does fate have in store for commodities and stock? Well, here’s another way to look at it. The weather is set to get colder, giving the virus a good environment to thrive, hence more infections. If it so happens, then we can only expect even stricter containment measures.
That will, in turn, crush the economy again, and so will the stock market. Perhaps, it could be a good time to focus on the crypto market, or so you say. Well, the crypto hasn’t been having it easy either, for the longest time now.
Will it be a stagnant year with sideways movement or continue to go downwards?
Cryptocurrencies – Light at The End of the Tunnel?
Bitcoin, the crypto giant, is struggling not to hit rock bottom. While there can be many explanations attached to this, including the controversial billionaire Ellon Musk and his company Tesla saying they’ll no longer accept BTC, the biggest is the economy crush.
The case isn’t any different with other cryptos, including Ether, Neo, Litecoin, and Tron. They are all affected by volatility and the general economic crush.
The latest market news and statistics of cryptocurrencies are never in a positive light. In the bearish markets that we have been experiencing over the last eighteen months, it’s not hard to find someone predicting doom for cryptocurrencies.
But what if there is now a glimmer of hope?
The most common terms used to describe the current situation within cryptocurrencies are bearish and stagnant. Media headlines report that prices continue to drop, exchanges keep closing, coins move from bad to worse, and new investors are nowhere to be found.
There’s a bright side that might not be immediately apparent at first: things aren’t getting worse. Just as the market had hit rock bottom in early 2018, there is now a dull grind downwards with some upward price movements here and there.
And many times it feels like an endless loop, especially when building up a portfolio with coins that constantly drop in value again.
As it is, most people have been holding their coins waiting for the right time to sell. The market is generally in panic mode.
But the thing is: no one actually knows what will happen in the future. All we can do is look at charts and indicators to try and get an idea of a possible direction.