Growth projections ominous, says agency
Mar 23 2011
Business owners are split over whether the UK economy will plunge back into recession
The government’s reduction in GDP growth projections for both 2011 and 2012 overshadows the measures put in place in the Budget to help small businesses, according to a commercial reference agency.
Martin Williams, head of external affairs at Graydon UK says, ‘The Budget contains a number of positive initiatives for small businesses. Ultimately though, opinion is split on whether such measures will be enough to resuscitate the economy in the face of rising oil and food prices, a weak property market, falling consumer spend and the continued lack of available finance for small businesses.’
Research conducted by Graydon UK among 180 risk and credit managers reveals that respondents are split over whether the UK economy will plunge back into recession.
According to the study, 48 per cent expect the UK economy to have shrunk again during Q1, leading to a double-dip recession, compared with 52 per cent who believe that the economy has already returned to growth.
Williams adds, ‘Businesses remain very uncertain about which direction the economy is headed. If risk managers do not have a clear sense of what the future holds, as underlined by this research, then confidence levels are unlikely to improve. Businesses need far greater clarity in order to be able to make decisions confidently and this is something that the government has failed to provide today.’
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