Titan Business Insurance calls for a slowdown in UK austerity measures as official figures that the UK economy shrank by 0.2% in the last quarter of 2011; 0.1% worse than many forecasters had predicted. This meant that growth in gross domestic product throughout last year was only 0.9%.
Titan is concerned about the ferocity of the drop, as growth in the third quarter of 2011 actually grew by 0.6%. The last quarter 2011 is the first contraction since freezing weather in the same period of 2010 resulted in a 0.5% decline.
Titan is especially concerned with the falls in manufacturing (0.9%); in construction (0.5%); and, no activity in the services sector.
Chief Executive Officer of Titan Business Insurance, Basil Tsapralis, said:
“We are entering the real part of the storm now and as the Bank of England Governor keeps warning, our resolve is about to be tested. And although there are signs of more encouraging news, with America showing decent growth and Asia still in positive territory, Europe looks like heading back into recession especially if the politicians fail to resolve the Eurozone crisis.
“What really worries economists is not that things will get better, but when. Some look to Japan and see a 20 year cycle as the country went from boom into bust and is still struggling to emerge.
“The figures are telling the Government that the brake is being applied to vigorously and throttling back now might avoid sending the country into a full blown and messy recession.”
Titan Business Insurance provides full support and competitive pricing for clients through the UK.