Forecast: Financial Services and Insurance Value Added in the UK

The financial services and insurance sector in the UK exhibited a gradual decline in value added between 2013 and 2023, standing at 6.74 units in 2023. Comparing the values of the last two years, the sector experienced a year-on-year decrease, with a 0.59% decline from 2022 to 2023. The Compounded Annual Growth Rate (CAGR) over the past 5 years (2019-2023) shows an average annual decline of 0.32%. From 2024 onwards, forecasted data indicates a continued downward trend, with a forecasted 5-year CAGR of -0.49% and a predicted growth rate of -2.43% by 2028.

Future trends to watch for include:

- Technological advancements potentially disrupting traditional financial services operations.

- Regulatory changes post-Brexit that could impact the financial sector's environment in the UK.

- Economic factors such as inflation and interest rates which may influence consumer behavior and market conditions.

- Increasing competition from fintech companies providing innovative financial solutions.