The figures for 2009 are in. Around 2.5 million Brits would have lost their jobs before we reach the second half of this year. The number was around 1.7 million a few months ago, when the first casualties in the banking sector were registered. Those reeling under the meltdown also found, to their dismay, other doors closing shut. Lenders began to play it very safe, choking credit availability and raising the lending bar quite high. This is not expected to change till the second quarter of 2009.
Amidst all the gloom, a ray of hope arrived through Bank of England's decision to chop the interest rate to 1.5% from 2%. The first significant step to battle recession, this move will ease the pressure off debtors. However, these rate cuts will leave the savers disgruntled, since the returns will be lesser now. For people looking to borrow, this piece of news would mean little since credit streams have already run dry. Opinions about the efficacy of this move, therefore, are divided. However, all hope is not lost for the afflicted. The government has apparently announced plans to offer tax concessions to the saving population and relief packages for the credit-hungry.
The government is doing its bit to help the consumer combat the effects of a crumbling economy. At the same time, individual efforts are being taken by people to see through the recession. Some of these include cutting down on their expenditure, shifting to cheaper commodity alternatives and using short-term loans to meet additional expenses. The economy is expected to see growth again towards the end of 2009, and these steps would ensure that people emerge from the slump with morale intact.
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