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Today's business and finance round up 2nd December 2021

📊UK on track for best growth in G7

2nd December 2021

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Today's stories

  • UK on track for best growth in G7

  • London crowdfunding pioneer snapped up

ECONOMYUK on track for best growth in G7

What’s going on?The UK is set to be the fastest growing country among the seven leading developed economies both this year and next, that’s according to the major economic think tank the OECD. But the organisation warned that rising inflation could derail growth.

Why is this important?

The OECD’s latest view of the UK economy expects growth to reach 6.9% this year and 4.7% in 2022 – higher than powerhouses like the US, Germany and Japan. However this has a lot to do with the fact that the UK was one of the worst hit by the pandemic last year with the economy shrinking by almost 10%.Despite the positive outlook, the OECD warned that the UK’s recovery could be upset by rising energy prices and chronic supply shortages. These factors could reduce household spending power especially if interest rates rise to counter inflation.On top of that the thinktank flagged that Brexit and the worsening trade relationship with the EU could also dampen growth in the medium term.The emergence of the Omicron variant is another risk countries worldwide, and the OECD warned that it could delay the global economy’s return to pre-pandemic levels. TakeawayAlthough the UK economy has rebounded strongly post lockdown there are hurdles to maintaining the growth momentum. Global supply chain bottlenecks and surging energy prices have dominated headlines recently but the emergence of Omicron and tense relations with the EU will present even more headaches for policymakers.

FINTECHLondon crowdfunding pioneer snapped up

Seedrs has been acquired by US investment firm Republic in a deal worth £75m.Since launching in 2012 the London-based crowdfunding platform has helped raise almost £1.5bn in 1,400 deals for some of the UK's most significant success stories, including banking app Revolut and vegan food service Allplants. Seedrs was the world’s first regulated crowdfunding platform and the first to allow users to buy and sell shares in private businesses. It has over 4,000 retail investors, including tennis player Andy Murray.The Republic takeover comes just months after Seedrs was blocked from merging with rival platform Crowdcube by the competition regulator.Republic is a fintech company that allows users to invest in private companies, debt and crypto. It plans to invest heavily into Seedrs to drive growth in the UK and Europe as well as launch innovative investment products.

Stat of the day

The OECD estimates that it would cost $50bn to vaccinate the whole world against Covid-19

Other stories to keep you in the loop

  • Rishi Sunak shelves proposal to hike capital gains tax

  • House price inflation climbs back to 10% but market may be cooling

  • Energy crisis: Zog becomes 25th household supplier to crash and burn since September

  • KPMG threatened with ban on bids for government contracts

  • Disney names first ever female chairperson

  • Gymshark to open first ever bricks and mortar store on London’s Regent Street

  • Elon Musk confirms he's worried SpaceX could go bankrupt

  • Youth publisher LadBible targets £360m valuation in London flotation

  • Match Group to pay Tinder founders $441m to settle lawsuit

Interesting links from around the web

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