UK Enters Deepest Recession In History

It has been revealed that the UK has entered the deepest recession in it's history following two consecutive quarters of negative economic growth. This was further exacerbated following the period of time that the country spent in lock down due to the Covid 19 pandemic. The government is only now starting to try and ease lock down measures and avoid a second spike in the virus which it is feared could cause measures to be tightened again.

An increasing number of UK and global investors are likely to move their assets overseas as Britain enters its worst recession in history, affirms the boss of one of the world’s largest independent financial advisory and fintech organisations.

This observation comes from Nigel Green, founder and chief executive of deVere Group, which has $12bn under advisement, comes as it is revealed that the UK economy suffered its biggest drop on record between April and June as coronavirus lock down measures pushed the country officially into recession.

The economy contracted by 20.4% compared with the first three months of the year.

Mr Green notes: “As was expected, Britain is now officially in recession.  It’s the deepest recession in UK history and the deepest of any G7 country.

“Whilst the economy grew 8.7% in June, which beat economic estimates, and confirms a recovery is now underway, the real test will be after the summer when there are no more national lockdown-easing measures to lift the economic spirits, more local restrictions are likely to be imposed and as significant programmes such as the furlough scheme which has protected jobs come to a halt.

“All of this creates ever more uncertainty in the UK economy.”

He continues: “UK and global investors will be becoming increasingly nervous of this worrying situation and can be expected to take precautionary measures to insulate themselves against a potential fall in the value of UK-based financial assets. 

“A growing number inevitably and quite sensibly are likely to be looking to grow and safeguard their wealth by moving assets overseas through various established international financial solutions.

“The pace of this trend, I believe, will increase over the next few months as the issues intensify.”

The deVere CEO goes on to add that the confirmation of a recession “may be a good excuse to start that much-needed rebalancing in favour of global stocks, bonds, currencies and perhaps property.”

The weak economy also further boosts the chances of tax hikes and relief cuts in the UK November Budget.

“It is highly likely taxes will rise and reliefs be cut. Possible targets for hikes could include income tax for higher earners, capital gains tax, inheritance tax, and VAT.

“In addition, new wealth taxes may be brought in, which was something the Prime Minister was considering before the pandemic hit,” notes Mr Green.

These potential changes in the Budget can be expected to prompt those overseas with financial ties to the country, to look into the international options available to them.

He concludes: “Now could be a good time to revise your financial planning strategies to ensure you’re best-positioned to be able to grow and protect your wealth.”

About deVere Group

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As an independent financial consultancy with a truly global presence, deVere Group prides itself in offering clients a world-class and results-driven service.

deVere Group was established in 2002 by CEO Nigel Green. As more and more people focused on opportunities abroad, Green saw a niche in the financial services market for them. Today, deVere Group has developed to become one of the world's leading independent international financial consultancy. With well over 80,000 clients in more than 100 different countries - and in excess of $10 billion under advice and administration - deVere Group aims to maintain its place at the forefront of the industry.

deVere Group's definitive aim is to support our clients in creating, growing and safeguarding their wealth. We want to join you on your journey and make your dreams come true.

What distances us from our competitors is our dedication to our team. As a powerful network of seasoned professionals, they are the backbone of deVere Group, allowing us to provide nothing short of the high-quality, and dependable financial advice that we have become renowned for.

Each client works with their own financial adviser. Together, they will develop, implement and manage a made-to-measure financial strategy that is fully in-line with the client's situation, needs and plans for the future.

At deVere Group, we work with people not numbers. Our clients' success is what determines our success.

Over the years, deVere Group has aspired to grow and ripen hand-in-hand with its clients. As a result, we have developed and grown our global presence considerably in order to best serve our clients, wherever they choose to call home in the world.

From FATCA, Retirement planning to Education planning and more, deVere Group offer an array of financial solutions to our clients which include international investors, expatriates and other globally-minded individuals.

By working with deVere Group, you will have peace of mind that your financial portfolio is in safe, proficient hands that know what it takes to secure, maximise and cultivate your wealth.

It is feared that the economic situation could be made even worse if there is a second wave of Covid 19. Work on a potential vaccine is still ongoing but no one knows when this might be ready in time for public use. Until then whenever people go out, they have to ensure that they wear face coverings to avoid catching the virus. Many shops and restaurants have refused to serve people unless they are wearing a face covering.