Insurance News Archive
GDP shrinks 5.6% in 12 months
Written by Jonathan Walker
The economy has contracted at an above-expectation rate in a record decline, which may concern those with property insurance.
New figures from the Office for National Statistics show that gross domestic product (GDP) has shrunk by 5.6 per cent in the last 12 months, with a fall of 0.8 per cent in the three months to June.
David Kern, chief economist at the British Chambers of Commerce, claims that there is no longer room to be complacent about the crisis, property insurance holders may be interested to discover.
He says suggestions that quantitative easing should be suspended are misguided and calls for action.
"It is important to persevere with an aggressive policy stimulus to ensure that the economic downturn does not worsen," he asserts.
Alex Dunn, senior trader at Caxton FX, claims that the worst of the recession has probably passed and asserts that investors are becoming more willing to take on risk, which could be good news for those with portfolio insurance cover.
24 Jul 2009
