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- British Chambers of Commerce downgrades its U.K. GDP growth forecasts
British Chambers of Commerce downgrades its U.K. GDP growth forecasts
The British Chambers of Commerce (BCC) released its U.K. GDP growth forecast on Wednesday. The U.K. economy is expected to grow at 2.4% in 2015, down from the previous forecast of a 2.6% rise, 2.5% in 2016, down from the previous forecast of a 2.7% gain, and 2.5% in 2017, down from the previous forecast of a 2.7% increase.
The downgrade was driven by weaker-than-expected trade and manufacturing activity data.
The BCC noted that the U.K. economy will be supported by the strong activity in the service sector and consumer spending.
"Official data is starting to reflect what our Quarterly Economic Survey has been showing all year - that our persistently weak trade performance and current account balance are impacting our overall growth. Similarly, the manufacturing sector has been hit badly by falling global prospects, tipping an earlier prediction of growth in 2015 to an expected contraction," John Longworth, Director General of the British Chambers of Commerce, said.
"We cannot rely so heavily on consumer spending to fuel our economy, especially when driven by increased borrowing. We have been down this path before, and know that it leaves individuals and businesses exposed when interest rates do eventually rise," he added.
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