Commenting on GDP Data Pointing to a Tough Start to the Year

  • Douglas Grant, Group CEO at Manx Financial Group PLC

  • 14.01.2022 10:00 am
  • undisclosed

Commenting on GDP data pointing to a tough start to the year, Douglas Grant, Group CEO at Manx Financial Group PLC, said: “This GDP data coupled with rising inflation and a potential interest rate hike in the near future all point to a tough start to the year and beyond. Raw material and labour costs are set to rise which will have to be passed on to the consumer otherwise, this will have a negative impact on firms’ working capital, something which is already scarce due to disrupted supply chains and the Covid-19 pandemic. We have seen several instances involving significant advances across many sectors which are unable to proceed as a result of supply chain holdups, hence stalling any potential growth. We believe that demand for working capital in the UK is set to soar to unprecedented levels as more and more businesses desperately need capital to counteract supply chain issues and keep operating while adapting to life outside of the EU bloc.

“We are already experiencing a debt burden for UK SMEs which has ballooned to record levels and unfortunately already created a relentless flow of weak zombie-like companies falling off a loan default cliff. It is imperative that we support sectors and businesses that are strong and nimble enough to adapt to the new economy and therefore continue contributing to its growth.


“The introduction of the Recovery Loan Scheme (RLS), which Conister has accreditation for, will act as second support system for those businesses currently struggling with working capital but with long term growth potential. We have been pleased to see the Government look beyond the obviously more resilient business sectors and introduce the RLS which can support those businesses that have been mostly negatively impacted by Covid-19, such as the hospitality and leisure sectors. Conister will continue to do all it can, working alongside the Government and traditional lenders, to support businesses.”


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Commenting on GDP data pointing to a tough start to the year


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