Displaying items by tag: Economy

The International Monetary Fund (IMF) predicts the UK economy will shrink this year while every other major economy will grow. The Bank of England also forecasts a 2023 recession - albeit shorter and less severe than previously forecast. Forecasts are never perfect. There are many factors affecting economic growth, from geopolitics to the weather. Predictions often miss the mark but can point in the right direction. UK's figures reflect the impact of closed schools, cancelled operations during Covid, as well as disruption due to strikes. The bigger picture, however, remains: the Bank of England and the IMF both expect the UK economy to shrink this year, while other G7 countries are expected to grow. There are ten million working-age people who aren't in a paid job. Nearly nine million of them aren't called ‘unemployed’ because they're not actively looking for work, or available to start a job. Instead they are called ‘economically inactive’.

The International Monetary Fund (IMF) says Britain is the only G7 economy forecast to shrink in 2023 due to higher energy prices, rising mortgage costs and increased taxes. England and Wales have had the most company insolvencies since 2009, UK mortgage approvals have tumbled, and grocery price inflation is a record 16.7%. Britain is the only advanced economy expected to fall into recession this year. The IMF said 2023 would be ‘quite challenging’ for the UK as it slipped from top to bottom of the G7 league table. We can pray for God to strengthen Jeremy Hunt’s mind and spirit as this news puts more pressure on him to balance Britain’s books successfully. Pray also for God to anoint him with heaven's wisdom in preparing strategies for the spring budget as the Bank of England continues to raise interest rates.

The production of opium increased sharply in Myanmar, reaching nearly 795 metric tonnes in 2022, nearly double the production in 2021 - the year of the military coup that plunged much of Myanmar into a bloody civil war that still continues. The UN believes the increase is driven by economic hardship and insecurity that followed the military takeover, and farmers in remote conflict-prone areas have had little option but to move back to opium. The region, where the borders of Myanmar, Thailand, and Laos meet - the Golden Triangle - has historically been a major source of opium and heroin production.

The cost-of-living crisis triggered by the Ukraine war, the energy crunch, surging inflation and the coronavirus pandemic has become the greatest worry for EU citizens, according to a new Eurobarometer showing 45% of respondents are currently having some or a lot of difficulties with their personal income. The poll speaks of a ‘polycrisis mood’ across the continent. Additionally, 46% of Europeans admit their standards of living have already decreased as a result of the mounting crises, while 39% expect to see a decline sometime this year. More worryingly, 30% of respondents struggle to pay their monthly bills ‘from time to time’ and 9% say this is the case ‘most of the time.’

After a wild few months in the UK economy, the Government wants to raise more money to cover a big black hole in its accounts. Jeremy Hunt, the Chancellor, has said everyone must pay more tax. Meanwhile, a group of economists have questioned whether the ‘black hole’ in public finances must be filled with austerity and tax rises. They said that the £50bn hole entirely disappears if debts are calculated differently. When Rishi Sunak was chancellor two years ago, he used a different accountancy rule to arrive at a government debt figure. Changing it back to what it was before the 2021 Autumn Statement completely removes the black hole, according to the economists' analysis, and will put government debt back on a sustainable footing. Pray for Jeremy Hunt and all members of the treasury to be wise regardless of the accountancy rules they choose to follow.

The Chancellor announced targeted payments to help with the cost of living. The national wage will jump from £9.50 to £10.42 an hour from April; help for energy bills will be extended, but less generous. There will be cost of living support for pensioners, the disabled, and those on low incomes. Means-tested benefits, including Universal Credit, and pensions will rise in line with inflation. Social sector rent rises will be capped at 7% in the next financial year. However, the cap on social care costs due next October will be delayed by two years. A ‘temporary’ 45% tax on companies generating electricity will be applied from January, and windfall taxes on oil and gas company’s profits will increase from 25% to 35% and extend until 2028. The NHS budget will increase in each of the next two years by an extra £3.3bn, and schools will receive £2.3bn extra in 2023 and 2024.

On 17 October Jeremy Hunt reversed 60% of the promised recent tax cuts and committed to reduce the two-year energy price guarantee to six months, while introducing ‘a new approach’ to the most needy after winter. A cut in basic income tax rate, promised by two chancellors this year, was cancelled. Pray for adequate advice and aid for those facing staggering rises in the cost of living. The changes caused political turmoil. On 18 October, senior aide Jason Stein was suspended for leaking information to the media. Next, home secretary Suella Braverman resigned because she had broken the ministerial code, and attacked Ms Truss's leadership in her resignation letter. Grant Shapps, who six weeks ago was sacked as transport secretary, replaced her. On the 19th an attempted fracking ban sparked havoc when rebellious Tories were threatened with party expulsion if they didn’t back Liz Truss. See the previous article, PM resigns.

We pray for peace to cover this nation. We speak hope instead of despair, prosperity instead of lack in finance and the economy; stability to markets, and wisdom to all those making decisions and directives. We agree with James 2:13 (‘Mercy triumphs over judgement’), and repent where our nation as well as our own actions have brought Your judgement upon us. We repent where debt is an accepted norm of society; we repent where we withheld when You asked us to give; we repent where there has been mismanagement, greed and corruption within the very structures of our society, and we ask forgiveness for every place where we as a nation have not stewarded well the resources You gave us. We ask for Your revelatory wisdom to those working at the Treasury and Bank of England. We ask that You connect what needs to be connected and disconnect what needs to be disconnected, so that this nation will be blessed in the year ahead.

Oman’s economy is heavily dependent on declining oil reserves. It has begun focusing on tourism as a new source of economic growth. Diverse untouched landscapes of coastlines, deserts, and mountains are unique destinations for travellers. The Oman Arab Bank recently sponsored their third tourism forum to train young adults in the tourism industry. While this boosts Oman’s economy, it is also an opportunity for the Gospel to reach five million people who have never heard the good news of Jesus’ love and gift of salvation. Proselytising is illegal, and those in active Christian ministry experience pressure to leave the country. But as tourism increases, creative access to new people groups will become more feasible. Pray for successful expansion of current Oman ministries: relief and water projects, media, literature, business as ministry, urban evangelism, and church planting. As tourism meets the financial needs of Oman, may the Church go forth to meet the spiritual needs.

A refugee agency in Lebanon noted discrimination and violence against Syrian refugees rose sharply recently, with more confrontations at bakeries where refugees often have to wait for bread behind Lebanese citizens. Rawan Haddad, of Tent Schools International, said that the refugees’ situation is sometimes better than most Lebanese. Nations provide basic support and limited facilities for refugees, but Lebanese below the poverty line have no support. There are shortages of bread, flour, and medicine. People don’t make enough to buy what they need, and the government won’t help. With these concerns in mind, Lebanese officials have now announced they plan to repatriate refugees back to Syria, but the problem is that European countries will not agree to that course of action.