UK economy in turbulent period
The British Chambers of Commerce (BCC) has downgraded its expectations of the UK GDP growth over the next three years.
The business body warned that GDP will grow just 1.8 per cent this year, down from the 2.2 per cent it had expected before June’s shock vote to quit the European Union.
Growth for next year has been revised to one per cent from 2.3 per cent. For the following year, the BCC expects the UK economy to grow at 1.8 per cent, down from 2.4 per cent forecast previously.
Suren Thiru, BCC head of economics, said: “The downgrades to our growth forecast confirm that the UK economy is set to enter a turbulent period, with growth expected to weaken materially in the near term.
“Mounting uncertainty is likely to put a brake on investment, while rising inflation and moderately weaker labour market conditions are expected to stifle consumer spending.”
“Although individual businesses continue to report strong trading conditions, the overall picture suggests a sharp slowdown in UK growth lies ahead,” says Dr Adam Marshall, acting director general of the British Chambers of Commerce.
“Our forecast suggests that the UK is likely to avoid a recession, but with the health warning that businesses are still digesting the result of June’s EU referendum and the challenges and opportunities to come.
“Stability, clarity and action must continue to be the watchwords for government. Aside from a clear timetable for negotiations with the EU, ministers must act to support business investment and confidence.”