2 Feb 2012

Economic outlook

By Bob Woods, Chairman

UK economic growth for the last quarter of 2011 compared with the third quarter was -0.2%. Whilst this is disappointing, it is not a surprise against a backdrop of public sector cuts and the economic contraction of our largest trading partner, the eurozone.

It is likely to be a defining year for the eurozone and, by implication, the global economy. All of Europe will have to make difficult decisions about austerity packages and, no less difficult, how to cooperate to ensure the survival of the euro. This is already developing into a political battlefield, and the outcome is likely to materially change the lives of millions across the eurozone.

The more successfully this is achieved, the lower interest rates and bond yields will remain, continuing to present investment challenges for those who need to achieve investment returns higher than bank rates, but who are reluctant to take risks. Therefore, we will be watching the political and economic arenas with great care and will keep our clients informed and advised.

To read the full article, please take a look at our wealth and investment bulletin, Managing Wealth Express