A top business insurance broker is warning that the UK economy is set to be slower than expected.
Titan Business Insurance, which handles policies for a large number of individuals, companies and organisations, notes that the Organisation for Economic Co-operation and Development (OECD) believes that the recovery in the UK will be subdued for at least two years, mainly because there is too much borrowing in the system.
But the OECD is predicting growth of 1.5% this year and 2% the next. The UK view – provided by the independent Office for Budget Responsibility – says that growth for 2011 is a little more optimistic at 1.9%.
And the OECD backs the coalition view regarding the austerity cuts, calling them both “…ambitious and necessary.”
Chief Executive Officer of Titan Business Insurance, Basil Tsapralis, said:
“When someone like the OECD says that the austerity cuts are ‘ambitious’, it does send a chill down the backs of most in the country as that means reduced spending across so many sectors and significant job losses. But the good news is that the country should achieve positive growth this year, and a better performance next.
“We knew it was going to be a tough two years and this is now being confirmed by what’s happening on the ground and by official and independent figures. We’re telling our businesses to keep their heads down and continue to do all the right things to come out the other side in good condition.”
As one of the biggest business insurance brokers in the UK, Titan has a wide range of clients who operate in a number of industrial and commercial sectors.
For further information about Titan’s services, visit their website titan-insurance.com or call them on 0207 731 3700.