Private wealth management may tread cautiously

Private wealth management firms may move forward with caution after the Office for National Statistics (ONS) recently revealed gross domestic product (GDP) growth in the UK.

GDP growth in the first quarter of 2010 stood at 0.2 per cent, lower than the 0.4 per cent recorded the previous quarter.

Consultancy Capital Economics stated the figures suggest it would not take much to push the country back into negative growth, a situation which could deter private wealth investors from taking big risks.

Chief European economist at the firm Jonathan Loynes said: ’The fact that it has only risen by 0.2 per cent I think, if anything, it increases concerns about a possible double-dip [recession].’

While the economy will grow, this will remain fragile, he added.

The ONS revealed the business and financial services sectors helped to contribute to GDP growth, while hotels, restaurants and distribution reined in the UK’s financial climate potential.ADNFCR-2318-ID-19741435-ADNFCR