How will city cope with looming recession?

A retail expert has said that Norwich is better positioned to wait out a looming recession.

A retail expert has said that Norwich is better positioned to wait out a looming recession. - Credit: Archant / Joshua Bamfield

With a barrage of gloom from Ukraine to Covid buffeting the economy the United Kingdom is teetering on the brink of recession. 

But according to one city professor this Fine City is better equipped to handle it than most.

Professor Joshua Bamfield, director for the Centre of Retail Research in NR2, said: "Norwich is better placed that most to wait out a recession.

"The city isn't dependent on a single industry that could suffer in a recession.

"Obviously lower-income households will certainly be adversely affected by inflation, wage increases insufficient to compensate for higher prices and possibly unemployment.

"However most of the professional workers in Norwich will be less affected.

People shopping on Black Friday at Gentleman's Walk in Norwich. Picture: Danielle Booden

People shopping on Black Friday at Gentleman's Walk in Norwich. Picture: Danielle Booden - Credit: Archant 2021

"In Norfolk as a whole a large proportion of households are pensioners.

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"Although many pensioners can expect to be even more hard up in a recession, a very large number of local pensioners have increased savings due to the pandemic, as well as occupational pensions.

"House prices in the city and the region have proved to be remarkably buoyant as well.

"A house-price crash seems unlikely particularly as many London-dwellers are still looking for accommodation away from London with a better lifestyle, low crime, and more space."

However the retail boffin adds that a recession could come in early 2023. 

Professor Joshua Bamfield, director of the Centre of Retail Research. Picture: Joshua Bamfield

Professor Joshua Bamfield, director of the Centre of Retail Research. Picture: Joshua Bamfield - Credit: Joshua Bamfield

He said: "All the talk is about recession.

"Most economists feel there probably will be a recession - but not yet.

"The prevailing opinion is that there will be growth in 2022, but a slowdown in growth should start by the end of the year, with a recession in 2023.

"Businesses have faced problems caused by the closures and disruption of the pandemic.

"The rapid rise in energy prices has been caused by the war in Ukraine as Russia is a major supplier of gas and oil to Europe.

"It's no wonder, therefore, that the last meeting of the Bank of England’s Monetary Policy Committee announced that the UK's economic situation was deteriorating and recession was possible by the end of the year."

People shopping on Black Friday at Gentleman's Walk in Norwich. Picture: Danielle Booden

People shopping on Black Friday at Gentleman's Walk in Norwich. Picture: Danielle Booden - Credit: Archant 2021

Three ways to help save money

It's never been more important to save money as the cost of living crisis bites hard. 

So here are some ways to help manage outgoings and save money.

Record any outgoings

It's good to know how much comes out each month.

So it can be helpful to keep track of all outgoings from essentials like shopping to non-essentials, like a round of drinks at the pub.

Set a goal

A good way to save money is to have an idea of what the excess cash will be used for.

Think a new boiler might be needed in the near future? Research the cost of one and budget around it.

Cut non-essential spending

It sounds easy but knowing when the cash can be put back in the wallet or purse is key to saving money.

Highlighting cinema trips or nights out at the pub which can be reduced, or cut out, will help.