Industry Surveys
Two-Thirds Of UK High Net Worth Clients Not Expecting A Double-Dip Recession
While fears of a “double-dip” recession in the UK are prevalent, close to two-thirds of the UK's high net worth clients do not believe that such a setback will occur in the near term, according to a survey by the wealth advisory firm Towry.
When asked by the firm “Do you believe the UK will enter a double-dip recession in the next six months?” 65 per cent of those surveyed replied in the negative – a view which is shared by the firm, which is instead looking slightly further ahead.
Andrew Wilson, head of investments at Towry, said the firm believes that the UK is more likely to enter a double-dip recession in the second half of next year, the economy either retrenching of its own accord, or being “effectively dragged down by the US.”
Explaining this view, Wilson said that not only will governments’ austerity measures start to bite in 2011 but also that the housing markets continue to look vulnerable, particularly in the US.
“The meeting of globalisation and the credit crunch has revealed a new reality, and one that Western governments seem ill prepared for. Amazingly, the UK still exports more to Ireland – which has suffered a 20 per cent contraction in GDP – than it does to Brazil, India, and China combined,” he continued.
“The UK is an expensive place to be as an employer or employee, with below trend growth rates and declining standards of living seemingly baked in for the next few years.”