Brits fearful as UK enters recession
Investors are likely to move assets away from the UK as the country enters a recession for the first time in 11 years.
The UK economy suffered its worst drop on record between April and June, contracting 20.4% and officially fell into recession. This was the result of the pandemic which saw consumers cut their spending and construction and production decline as factories were forced to close.
The FTSE 100 stockmarket had fallen 17% since the start of 2020.
Nigel Green, chief executive of financial advisory group deVere Group, said: “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.”
He suggested investors look to a diversified portfolio of global stocks, bonds, currencies and perhaps property.
The worst European recession was seen in Spain which saw the economic contract by 22.7%, another country popular with British expats.
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