Commenting on this morning’s UK GDP announcement, Melanie Baker, senior economist at Royal London Asset Management said:
“Today’s numbers confirm that COVID-19 and efforts to contain it have caused huge economic disruption.
“Alongside residual fear of the virus and its implications (including for job security), the recovery is likely to take much longer than the fall.
“April should be the lowest point for GDP data. With the easing of social distancing measures, figures will improve.
“The figures also show why it is still too early to start withdrawing policy support from the economy, despite having entered the recovery phase. The Bank of England are likely to increase asset purchases next week.”
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £148 billion of assets and employs 121 investment professionals as at 31 December 2020. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.
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