The UK economy has fallen deeper into recession with GDP falling by 0.7% in the Second Quarter of 2012. The continued double dip recession that many predicted last year was ignored by George Osborne who naively assumed that the UK economy would bounce back despite the savage public sector cuts and austerity measures.
The Bank Of England’s policy of quantitative easing has merely prolonged the recession rather than resolving the problem as the increased money printing has effectively subsidised the banks and has not filtered down to the individual consumer. The Euro crisis has led to a significant decline in confidence within the global market. Further pain is expected in the UK given that the economy has been boosted by the Queens Jubilee and the Olympics this year. A post Olympics slump is extremely likely.
The market for accountants has not suffered despite the difficult market conditions. Strong accountants are required under the current climate as businesses are placing greater emphasis on managing their costs. Contractors and freelancers have had mixed fortunes to date but would be advised to consider the likelihood on a post Olympic slump when deciding on their next contract role.