Is there a recession coming in the UK? How to protect your savings and investments in 2022

Is there a recession coming in the UK? How to protect your savings and investments in 2022

Pressure is building on households in Britain. The cost of living crisis looms large and low interest rates mean that the value of our money is falling fast. The central bank raised interest rates from 0.75pc to 1pc in April 2022 to combat rising inflation - but it is not guaranteed to be enough to bring prices low enough for struggling households. Many people can still feel the lingering effect of the Covid recession of 2020, but so far the British economy has staged a remarkable "V-shaped" recovery. Experts think the country is on track to outpace every other nation in the G7 for the second consecutive year in 2022. But lingering Covid uncertainty means that persistent growth is not a guarantee. The UK's economy grew by 7.5pc overall in 2021, but this included a 0.2pc contraction in December. A recession can have a devastating impact on people's everyday finances, as a weaker economy usually means that salaries drop and redundancies rise. Telegraph Money explains what a recession is, and how you can protect your money from the negative effects. What is a recession? When a country is running smoothly, the value of the goods and services it produces –