Latest GDP figures show UK has entered a recession - will it affect you?

The UK entered into a recession in the second part of 2023 but what is a recession and how does it effect businesses?

The Gross Domestic Product (GDP) is the value of goods and services in the UK, when all is going well, the GDP rises and the average income also goes up, however, when the GDP falls this is called a recession.

When the GDP rises this means there are more jobs are available, and that companies can pay more to employees and shareholders, there are also more funds for the government due to taxes. When we are in a recession the opposite occurs. A recession can be disastrous for companies as it usually means there will be a sharp downturn in its cashflow, which in turn means restricted overheads, job losses and reduced profit.

If you are feeling the effects of the recession from 2023 and worried about the survival of your business, please do not hesitate to get in touch with Parker Walsh for free no obligation advice tailored for the needs of your company and you.

^{Photo by Competitive Insight on Unsplash}