The British Chambers of Commerce (BCC), the national body of 52 accredited Chambers of Commerce across the UK, has warned that uncertainty over the UK’s relationship with the EU and higher inflation rates will have a negative medium-term impact on the UK economy. While the BCC expects GDP to grow by 2.1% this year (up from the 1.8% forecast just three months ago), it expects growth to slow to 1.1% next year and to rise marginally to 1.4% for 2018. Meanwhile, a separate report carried out by BDO (a leading accountancy and services group) found that business output rose for the first time in November after 17 months of decline, indicating that the UK economy had stabilised in a lower gear. The BCC has explained its upgraded growth forecast on a ‘stronger-than-expected performance’ of the economy in the third quarter when the UK economy rose by 0.5%. The BCC said in a statement – ‘firms’ “business as usual” approach had ensured that the UK economy had weathered the storm so far, but the fall in value of sterling is expected to have an impact on the growth of the UK economy’.
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