Titan Business Insurance is concerned that one of the UK’s foremost economic forecasters is saying that the country is already in recession.
What makes the prediction worse says Titan, is that the Item Club, which is part of Ernst & Young, uses the same modelling techniques as the UK Treasury. So, their forecasting is usually accurate, or at least will give much the same results as the civil servants in the Treasury.
The Item Club believes that gross domestic product contracted in the final three months of 2011. Furthermore, that it would also shrink in the first there months of 2012. Two periods of contraction are the technical definition of a recession.
Their modelling also showed that even if the Eurozone managed to sort out its problems (and that is a big ‘if’ reckons Titan), the UK would only manage growth in the region of 0.2%.
Chief Executive Officer of Titan Business Insurance, Basil Tsapralis, said:
“This is rather depressing news, but matches what we are hearing back from our clients. Things are very tough out there at the moment and much of the feedback we’re getting is negative. Actually, it would not surprise the team here if it turns out we are in recession. The good thing is though, that there are tentative signs the economy might bottom out in 2012 and be set for recovery in the second half.”
Titan Business Insurance handles clients in all business sector and offers a specialist service for SMEs. It combines competitive pricing with a high level of customer support.