Tony Larkins, of Beacon Wealth, writes on the state of the economy

The UK has been volatile due in part to uncertainty caused by Brexit, the instability caused by the Mini Budget, and currency rates.

Tony Larkins is the managing director of the Beacon Wealth Group (Image: BEACON WEALTH)

Having a new Prime Minister and Chancellor appeared to have stemmed the tide of despair, but we still have a huge fiscal black hole and borrowing equates to 99.5 per cent of GDP, which has seen some less-than-ideal decisions made.

High inflation has caused mass unaffordable wage demands and strikes; although they help to draw our attention to ineffective systems, often at the point of despair, they can further aggravate lack of supply issues, changing working patterns, and changing demands.

In the same way, downloads reduced demand for CDs and CDs reduced demand for vinyl, working from home and virtual administrative tools have reduced demand for postage, train travel, and large commercial offices. In the future, the electric car's popularity will certainly change demand for many industries.

Unsurprisingly, share prices and funds are both volatile. It seems as though the more you look at them, the more volatile they appear. So, unless you manage a portfolio and know how to measure the changing price pattern, you would be better off looking at them less frequently. The more you look, the more you worry.

COP 26 and 27 have re-examined the problems the world is facing but the solution is too expensive, especially when the world has no money. I believe the way to save our planet rests with technology that hasn’t been discovered or harnessed efficiently yet. It has been forecast that the population will hit eight billion next year and grow exponentially, and with food wastage at arguably its highest-ever level, finding a solution is paramount.

So, where do we stand for 2023? It depends on when the world peaks for inflation, it will differ between countries, and may have already happened, and when interest rates start to fall.