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Could 'unsustainable growth' prompt business insurance review?

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Companies may be reviewing their business insurance needs after hearing that the latest growth figures have been deemed "unsustainable" by one economist.

Howard Archer from IHS Global Insight said the latest GDP data represents a "one-off spike" and is not an accurate indicator of the UK's economic health.

The Office for National Statistics recently confirmed that the economy grew by 1.2 per cent in the second quarter of the year.

"It's an unsustainable figure and it's been boosted by a number of temporary factors as well," Mr Archer stressed.

"It completely overstates the strength of the economy."

The economist claimed that government spending cuts have the potential to push the UK back into recession.

"Much of it depends on what happens in the global economy overall," he stated.

With this in mind, business insurance may become a greater priority for many firms, providing cover against unforeseen problems such as customers going bust or having difficulty meeting payments.
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