With the employment situation and housing market expected to continue to improve, economic growth could accelerate in the second half of the year.
Should this accelerated growth lead to additional business for the nation’s small businesses, there might be an increased need for liability insurance.
Fannie Mae’s Economic Strategic Research Group projects overall growth in 2013 will be 2.2 percent, an improvement from 2 percent in 2011 and 1.7 percent in 2010.
“Our May forecast predicts that the second half of 2013 will be a little stronger than the first half, despite the slowdown during the past couple of months,” said Fannie Mae Chief Economist Doug Duncan. “Employment numbers are getting better, albeit it at a relatively slow pace, and the April employment picture should help boost consumer sentiment toward the economy overall.”
The employment situation has already shown positive signs, adding 165,000 jobs in April, which brought the unemployment rate down to 7.5 percent, according to the Bureau of Labor Statistics.
As small businesses grow, their insurance needs might change. With that said, an improving economy could lead many companies to need to re-evaluate their insurance portfolio.