Market Loop - 📊2022’s key economic trends

View this email in your browser

4th January 2022

Bite-sized business news from the UK and beyond

Good morning Aaand we’re back! Welcome to 2022, hope you all had a relaxing break. For anyone looking for achievable resolutions then check out this list of 100 ways to slightly improve your life without really trying.

Today's stories

2022’s key economic trends
Cost of living set to rise by £1,200

ECONOMY
2022’s key economic trends

What’s going on?
This year the UK economy is set to be marked by: Covid, inflation and interest rate rises.

Why is this important?

Covid
Unfortunately it doesn't appear that Coronavirus is going anywhere soon, but hopefully this year it becomes something that Brits can live alongside.

The end of 2021 saw the emergence of the Omicron variant which led to the reinstatement of some restrictions in countries like the UK and full scale lockdown elsewhere like the Netherlands.

On the bright side production of vaccines and treatments will ramp up in 2022 and their widespread availability should dramatically reduce hospitalisations and deaths.

But on the downside it’s predicted that more variants could rear their heads with the possibility of super-variant i.e. one that’s highly contagious and proves resistant to vaccines.

Inflation
Inflation was one of the biggest stories of 2021 with consumer prices reaching a decade high of 5.1% in November. Pricing pressure came from kinks in global supply chains, labour shortages and rising energy demand post lockdown.

These issues are expected to continue for the next few months, peaking in the spring before easing, with inflation set to hit 6% - the highest since 1992.

Interest rate rises
Just before Christmas the Bank of England took the market by surprise when it announced the first increase in interest rates for three years from 0.1% to 0.25%.

It was all in the name of curbing inflation but was seen as a possibly risky move given Omicron-related economic uncertainty.

Investors predict that the Bank will increase interest rates to 1% by the end of the year to keep a lid on inflation, with the first of several small moves from as soon as next month.

Takeaway
It may be a new year but a lot of the same trends from 2021 have been carried forward. There’s hope that 2022 will bring us closer to the end of the pandemic and to a new normal of living alongside Covid. But the knock-on effects of higher inflation and interest rates could linger for longer.

PERSONAL FINANCE
Cost of living set to rise by £1,200

2022 will be the “year of the squeeze” for household income, that’s according to the economic thinktank the Resolution Foundation.

It’s estimated that the average family will be £1,200 worse off due to a combination of higher inflation, low wage growth and tax rises.

The pain is already being felt with consumer prices at a decade high, but April will be the peak when the energy price cap is set to rise to a record high and national insurance contributions will increase.

The Foundation said that wages didn’t grow towards the end of 2021 and is unlikely to start growing again until the final quarter of this year.

Poorer households will feel the squeeze the most as they spend a higher proportion of their income on energy bills. They also had less opportunity to save during the pandemic and now have a smaller buffer.

The cost of living crisis will likely be a hot economic and political topic this year. The Foundation has called on the government to do more to help households by raising universal credit and holding down energy bills.

Stat of the day

The world economy is forecast to reach £100 trillion for the first time in 2022

Other stories to keep you in the loop

Staff shortages could force business closures in the New Year
UK bank branch numbers have almost halved since 2015
House prices in UK soared to record high in 2021, says Nationwide
Ban on loyalty penalty for car and home insurance customers comes into effect
China's Tencent builds stake in UK digital bank Monzo
Just Eat joins UK on-demand grocery delivery market with Asda tie-up
David Bowie back catalogue sells for 'hundreds of millions of dollars'
Apple hands out £130k bonuses as it fends off Meta engineer grab
Former Silicon Valley darling founder convicted of fraud
Tesla shares surge as it delivers record electric car sales sales
China Evergrande shares suspended amid reports of demolition order

Interesting links from around the web

Reading the virtual room: 3 ways to decode body language over Zoom
How to know what you really want this year
Remembering the startups we lost in 2021

Forward to Friend

Not a subscriber? Join free

How did you like today's email?
Get in touch with any feedback or even just to say hi
hello@marketloop.co

Copyright © 2022 Market Loop, All rights reserved.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list (and break our hearts).

This email was sent to you
why did I get this? unsubscribe from this list update subscription preferences
Market Loop · 16 Great Chapel St · London, London W1F 8FL · United Kingdom

💸£1bn support for Covid hit firms

Wednesday, December 22, 2021

.... and 🔥Energy bills could rise by over 50% View this email in your browser 22nd December 2021 Bite-sized business news from the UK and beyond Good morning This is the last Market Loop of 2021! Thank

🎉Record investment year for UK tech

Tuesday, December 21, 2021

.... and 📉Turkey takes action to halt currency freefall View this email in your browser 21st December 2021 Bite-sized business news from the UK and beyond Good morning After a series of pandemic-era

😦Hospitality sector cries out for gov support

Monday, December 20, 2021

.... and ❌Online grocer Farmdrop goes bust View this email in your browser 20th December 2021 Bite-sized business news from the UK and beyond Good morning This is the last week of Market Loop for 2021

😱BoE surprises with interest rate hike

Friday, December 17, 2021

.... and 👗Boohoo falls out of fashion as supply chain problems bite View this email in your browser 17th December 2021 Bite-sized business news from the UK and beyond Good morning Cream cheese has

📈Inflation nation

Thursday, December 16, 2021

.... and 😱Nightmare movie View this email in your browser 16th December 2021 Bite-sized business news from the UK and beyond Good morning If you're finding that all your in person social events are

Maybe college football isn't the best tool to fight the enrollment cliff

Thursday, April 25, 2024

A new study is skeptical of football's ability to actually drive enrollment ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

🎙️ New Episode of The Dime Paul F. Austin on Exploring Psychedelics: Creativity, Hidden Benefits, Microdosing, and Retreats

Thursday, April 25, 2024

Listen here 🎙️ Paul F. Austin on Exploring Psychedelics: Creativity, Hidden Benefits, Microdosing, and Retreats The use of psychedelics by high-performing individuals and entrepreneurs is on the

Market Loop - 📊2022’s key economic trends

Older messages

💸£1bn support for Covid hit firms

🎉Record investment year for UK tech

😦Hospitality sector cries out for gov support

😱BoE surprises with interest rate hike

📈Inflation nation

You Might Also Like

Maybe college football isn't the best tool to fight the enrollment cliff

🎙️ New Episode of The Dime Paul F. Austin on Exploring Psychedelics: Creativity, Hidden Benefits, Microdosing, and Retreats

Mind-blowing exclusive hack

Music to Spotify’s ears

Musk 👾 Read

Computer Vision in the 1980s: Translating Visual Processing into Algorythms

🦅 This will increase your productivity 10x

The end of Steph-LeBron-KD

Blockchain Groups Sue SEC Over Dealer Rule

Digiday Programmatic Marketing Summit: Only a few spots left