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Today we bring you the top trends which will impact Law Firm in 2024. We explain why and how they impact law firms so that you can stand out in your applications and interviews.
- Why Economic troubles could harm firms
- The impact of Geopolitical tensions
- The rise of consolidation and tech
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In short: The Bank of England's latest forecasts suggest the UK might escape a recession in 2024 but that comes alongside no expected growth for 2024 and a small growth of 0.25% in 2025. This stagnation creates significant challenges for law firms, particularly in transactional sectors.
What to expect:
- Interest Rate Impact: The Bank of England's pause on interest rate hikes keeps borrowing costs high, which may initially reduce mergers and acquisitions and other transactional activities. However, a stable yet high-interest rate environment might eventually encourage a revival in these activities as businesses and individuals adapt their financial strategies.
- Adapting to Client Needs: The current economic climate of minimal or no growth is making clients more cost-conscious, potentially increasing the demand for efficient and cost-effective legal services. Law firms may need to shift towards fixed-fee arrangements and outsourcing to align with these evolving client expectations.
- Real Estate and Corporate Challenges: The sensitivity of the real estate sector to interest rate fluctuations may continue to slow down transactions in property acquisitions, sales, and financing, while boosting the demand for legal services in restructuring and refinancing. Additionally, higher borrowing costs could push up corporate debt, leading to a higher demand for legal expertise in restructuring and insolvency.