What does this recession mean for me? When will a government gain control of the economy?

February 15, 2024

It has been almost 5 years since the economy was last “stable”. The average person was making around £46,000 a year, taking home £40,400 a year after taxes. Fuel prices, food prices and everything was stable, and had been stable since the 2008 financial crash. We had the Conservative Government in power for around 2 years, followed by Labour for 2 years, and the JNP for 1 year. Each government failed to keep the economy stable and from spiralling out of control as it is now. The Conservatives are now in power, and have pledged to get the islands economy back on track by the end of 2028. The economy has shrank 32.1% since 2022, falling behind France. There has been a total of £1.1 Trillion spent on trying to keep the economy afloat. The economy is now in a recession, a deep hard recession predicted for 2028. House prices have collapsed, falling 19% last month, with average wages falling from £135,000 a year to £89,000 a year. Economists predict unemployment will sharply rise from 4.2% to well over 10%, sparking fears that the recession might get out of control of the governments hands. It is predicted in the 2028 Budget there will be minimal new things funded as the government concentrates on bringing prices down. In fact, it is predicted that the government will make cuts to public services, such as the Bus Service which is owned by the government, road workers, Healthcare & Water. If the government does, people are more likely to give the government backlash as it is making over £224mil a year after paying its bills. Some people have said, “The government is trying to profit from the crisis we are experiencing”. The Chancellor has warned of a “tough year ahead”. Economists predict if the cards are played right, the economy will come out of the recession by the end of 2028, and will have a major recovery in 2029.

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