The detrimental effect the weather is having on the economy

It would be quite unexpected to see a third dip in the UK’s economy within a span of four years, but as shoppers hold on to their money and transportation is disrupted it seems that the unexpected might very well happen. As snow covers  a great part of the UK, economists warns of its effects on the economy and how a triple-dip recession would most likely happen.

Just like the gloomy hue of the snow blocked sun and the cold weather showing little signs of stopping, as well as green grass covered and nowhere to be seen, the forecast for UK’s economy is just as gloomy. A string of economic releases – like surveys for businesses that are at a loss, really low retail sales figures, and dreadful trade data – have had a lot of people concerned about the output figures for the final quarter. Most of them are even quite sure that figures would be lower than the fourth quarter the previous year.

Analysts are now fearing a cold snap on January could very well push the UK into a third recession whilst the second one having happened quite recently. As transportation was disrupted, Britons had no choice but to stay at home and forego shopping, quite a few stores and restaurants had to close, companies had to let employees go home early and stop operations, while certain supply chains got affected and stopped operations as well. The chief European and UK economist that works for IHS Global Insight, Howard Archer, even stated that a lot of retail stores suffered quite a loss due to Saturday shopping being disrupted.

According to the UK economist David Tinsley in an interview with the BNP Paribas, widespread disruption is expected from the huge snow fall pileup, and there could be a drop in the country’s GDP for the first quarter. This could lead to a triple-dip, although for more erratic reasons.

As the chaos continued at Heathrow airport, and anxiety rises in some passengers, so too does the number of passengers vowing to boycott the airport, British Airways, or even go so far as to say that they would boycott Britain itself. At Heathrow airport, close to a hundred flights got cancelled, 67 of the said cancellations were departures, though re-booking a flight was an option given to the passengers