According to a new study (Lloyds Bank), only 3% of British financial firms are upbeat about the British economy in 2016. And it is not without reason.
Britain is on the brink of an economic crisis, a slowing Asian market, weak oil prices and Britain's own weakening stock markets acting as the trigger. Many in Britain have blamed mainland Europe for the island country's financial problems. Consequently, more and more Britons are calling for their country to leave the Euro zone. These and other rumors have depressed the economic climate in Britain.
Financial companies don't expect much from the UK economy in 2016
More than 4 out of 10 large financial companies have said, they don't see the British economy improving in the next one year. According to Ed Thurman, MD of Financial Institutions Lloyd Bank, '2016 has already been a very tough year for UK financial sector companies and the current problems have further dented their confidence.'
Only 3% of major companies are hopeful the economy will improve in 2016. According to the companies, the two major problems staring the UK economy in the face, are new regulation and volatility in financial markets.
The Chinese economy, one of the largest consumers of commodities has slowed down considerably, depressing global economic forecasts in its wake. Oil prices have also decreased by close to 70% since 2014. Still, there is some silver lining.
The UK expected to do better than other G7 countries
More than 52% of major UK companies say that the UK will grow faster than its G7 partners- France, US, Germany, France, Italy and Japan in 2016. The major reason cited is the UK's skilled workforce, financial stability relative to other countries and the country's financial reputation.
Ed Thurman added, 'the UK financial sector is facing threats from new regulation and economic volatility. These don't look like they will abate any time soon. At the same time, there is an overwhelming understanding that the UK will at least do as good as the other G7 countries or even better.'
Britain has never fully reconciled to the Euro zone, leading many observers to compare Britain's threats to leave the Euro zone akin to rats leaving a sinking ship. Many have slammed the UK for they see as blatant 'opportunism'. Many have called the country a 'fair weather friend', for bailing out on the Euro zone in its moment of crisis.