With the news that the UK could be headed for a triple dip recession comes renewed fears that business confidence amongst all sectors of the UK economy could be negatively affected. Figures released on Friday showed that UK GDP was down by 0.3% in the final quarter of 2012, giving added credence to warnings that the economy will carry on struggling well into 2013.
This follows growth in the third quarter of 2012, but this has been seen to have grown from the Olympics. The Director General of the British Chambers of Commerce, John Longworth, commented;
“It is of course concerning that the preliminary GDP estimate revealed the UK economy shrank in the final quarter of 2012.Despite the weak figures, our own research shows that firms across Britain are still confident they can drive growth in 2013, highlighting the determination of UK businesses.”
“What is clear is that British businesses need politicians to do everything they can to kick-start growth. Business wants to see bold and far reaching measures to drive growth and enable British firms to go head-to-head with their competitors overseas.
“Recent steps to improve access to finance, such as the commitment to create a business bank, must be implemented at scale and with a clear timetable. More forceful measures are also needed to unlock massive private funding to renew Britain’s infrastructure. These measures will help create confidence, jobs and ultimately growth in the UK economy.”
David Kern, Chief Economist at the British Chambers of Commerce (BCC), added: “The disappointing GDP figures could lead to renewed talk of a triple-dip recession, which could damage confidence. However, it is important to put this in perspective. The ONS figures for the third quarter were inflated by ticket sales for the Olympics, and this creates a downward distortion for the fourth quarter.”
If your business is looking to beat this worrying trend downwards, then it’s important to be proactive to take advantage of all the growth opportunities you can. Alternative finance, exports, government grants – there are many schemes out there that could help.