Paphos People

It has been reported today the UK is about to enter a recession.

Costs are up along with a higher level of unemployment and redundancy.

Business and the High St is suffering a down turn.

The stock market is falling and exports are down.

Construction has nearly ground to a halt.

All the hallmarks for a recession, maybe time for us all to tighten our belts and ride the storm.

Jan

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ALWAYS MOVE FORWARD

How depressing is this?

We were hoping to sell the house in the next 12 months, but now we need to think more like 2-3 years.

'You reap what you sow', as they say, and the UK has been living on too much credit for far too long.

The hangover after the party............?

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Pam

Life is what happens when you are busy making other plans

You are right Pam, the feel good factor that everyone enjoyed has certainly halted which as you say was fuelled by credit.

I don't know where you live but houses are still selling if very slow and some areas are still quite buoyant, but it's only pockets.

It's families with children that are more effected and the elderly.

This isn't to say it doesn't effect people like ourselves, we get hit by higher costs and fuel rises.

Cyprus economy appears to be the most stable throughout the EU, but it will hit Cyprus too due to less visitors from the UK and other EU countries.

Also rising fuel and electricity.

Sorry didn't mean to make anyone feel depressed.

Jan

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ALWAYS MOVE FORWARD

It certainly does appear to be doom and gloom on the economic front - talking to my visitors from the UK recently, they were saying they've noticed a big difference in the cost of living - fuel and food in particular.

This leaves the average home with a lot less expendable income each month, which will have an obvious knock-on effect on other sectors of the economy - retail, leisure etc.

Once you get into that feedback loop it's difficult to get back out of it - I think things will get a fair bit worse before they get better.

From a personal point of view I'm just grateful that our kids are up and fending for themselves and we are at that stage where you don't rely on credit.
I would hate to think I was trying to bring up a young family today.
Gary

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So close yet so far away

I think most of us who have been keeping an eye on things had already concluded that the UK is in recession. I am just surprised that it has taken this long for it to be "confirmed". We made the decision about 2 weeks ago to bite the bullet and convert all of our sterling savings into Euros, based on the fact that a large chunk of them will be eaten up by our build costs and the contract price was fixed in CY£, and accordingly now € converted at the fixed 1.71. We have already seen those costs rise considerably due to the weak Sterling and could not risk the possibility of another 20% fall, potentially leaving us 20% short on the budgeted build costs.

I know were were extremely lucky to have sold our house early this year and many people are not in such a fortunate financial position as we are. I also know we will be getting a lower interest rate for our Euro savings than we would have in Sterling, but not 20% lower!!! I hope we won't regret our decision but in the light of the latest news and predictions I don't think we will. Too late anyway. At least now we know exactly how much money we have and are not at the mercy of a unstable currency. We moved the last smaller amount into Euros today and the rate today compared with 2 weeks ago would have lost us another £1300 on the exchange. I wonder how many more people living in the Euro zone will be doing the same????

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Tina
xxxx

I think you made a wise decision changing your currency now than leaving it to chance, some of the monetary problems we have now are the worst for over a decade. I think Martin's prediction could be right it's likely to get worse.

Listening to Martin (from Martin's money tips) on the television last night, he is strongly advising people of the UK to cap all their domestic fuel bills now this week with thier choosen provider, but to shop around for the best deal. He was saying the estimations of 40% increases in the coming year is likely to be a reality.

Jan

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ALWAYS MOVE FORWARD