24th July 09: PPR - Biggest ever drop in GDP announced
Nick Hopkinson, Director of Property Portfolio Rescue comments on the latest UK Growth figures from the Office of National Statistics released today:
“Today’s figures reflect the harsh reality of how badly the UK economy is really doing at the moment. The annual fall of minus 5.6 percent in the size of the overall economy is the biggest drop since comparable records began in 1955. As seriously, all sectors of the economy are shrinking, even the public sector now. Unemployment is surging, business failures and bankruptcies are continuing daily and even the British Retail Consortium who is paid to promote how successfully retailers are doing is forecasting 15 percent of high street shops will be closed and empty by the end of this year.
“Unfortunately, there is no visible evidence that we are close to a sustained recovery, Quantative Easing and the other government initiatives have done nothing yet to increase credit to small and medium size businesses which are the life blood of economic growth for the UK. The banks remain closed for lending to those who need it most, while they repair their balance sheets.”
For further insight and commentary on the impact of today's news on the residential property market Contact us.
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