BCC downgrades growth forecasts
THE British Chambers of Commerce has downgraded its growth forecast for next year from 1.2 to 1%.
Its estimate for 2014 has also fallen from 2.2% to 1.8% and while the forecast for 2012 has been upgraded it remains in negative territory at -0.1%.
The BCC’s forecasts were published this morning, a day ahead of the latest figures from the Office for Budget Responsibility and the Chancellor’s Autumn Statement.
TheBusinessDesk.com will bring readers coverage and analysis of the Autumn Statement in partnership with Ernst & Young tomorrow.
According to the British Chambers, public sector borrowing for this will come in £12bn higher than forecast by the OBR. Its inflation forecast for next year is higher at 2.5% falling to 2.2% in 2014.
Director general John Longworth said: “The fact remains that growth is still too weak. Thankfully, we have businesses here in the UK that are ambitious, determined and resilient. Many firms are expanding exports, investing, and creating jobs, but more must be done to support the aspirations of growing companies that will be the wealth creators of tomorrow.
“This is why we are calling for decisive action in the Autumn Statement. Business wants a hybrid strategy that delivers both deficit-reduction and growth. This requires a laser-like focus on the implementation of important growth measures, such as the delivery of key infrastructure projects across the UK and the creation of a business bank that heralds a radical and long-term change in the way that companies access finance.”
The BCC expects business investment to grow by 4.3% in 2013 and 4.6% in 2014.
