Ten years on from the biggest economic crash since the Great Depression, there are concerns from some quarters that we might be about to experience another one. While it’s impossible to say with any certainty whether or not another economic downturn is about to materialise, there are a few tell-tale signs which indicate that a crash is at least possible, if not probable. These include:
- The “looking out for number one” philosophy. The policy of putting national interests ahead of global ones is most vocally propagated by Donald Trump and his America First mantra, but the USA is far from the only nation looking inwards at the moment. The imposition of trade tariffs and barriers in order to stimulate growth in the domestic market may work in the short-term, but further down the line this tit-for-tat approach to business relations is sure to implode.
- The magnitude of the Chinese market. Home to the second biggest economy in the world, China is still enjoying a healthy rate of growth at 6.7% of GDP per year – over three times greater than the States and more than five times that of the UK. The sheer size of China’s influence on the global economy is cause for concern itself, before its opaque practices and governmental reach are taken into account. A misstep from China could have huge ramifications for the rest of the world.
- Even the staunchest supporters of the UK’s imminent departure from the EU must recognise that it will likely entail economic hardship, at least at the outset. This could not only threaten British businesses and economies, but have a negative impact on the value of the pound worldwide. Although the UK no longer has the financial sway it once did, the pound is still a premier currency on the foreign exchange, so a major loss of faith in the currency could have a significant knock-on effect on others around the world.
- Housing collapse. Investing in property is as safe as houses, right? Well, although property values do invariably rise over time, they are not without their proclivity to plunge at will, as well. Another collapse in the housing market could come about from a number of different factors, including disinvestment from overseas powers, rising interest rates or an overall deceleration in household incomes. As the biggest influencer of economies the world over, a housing crash would necessarily cause wider ripples in the financial sector as well.
Don’t let a downturn turn down your dreams
Just because storm clouds may be gathering, that doesn’t mean a downpour is guaranteed to follow – and even if it does, aspiring entrepreneurs and business owners shouldn’t view it as the end of their business ambitions. Indeed, a savvy CEO can even turn a crisis into an opportunity, especially with the right financial backing behind them.
If you are looking to make 2018 the year that you take your company to the next level, Genie Lending are here to help. With an extensive network of contacts in the finance world and the knowhow to leverage a deal that’s right for you, we can help you locate the funds you need to make your dreams a reality. To learn more, get in contact with us today and one of our friendly team will be happy to talk you through your options.