ECONOMIC growth forecasts have been scaled back in the latest quarterly review by the British Chambers of Commerce (BCC) today.
But the BCC says gloom over the UK’s economic prospects is unjustified.
It expects UK GDP growth of 1.1% this year compared with previous forecasts of 1.3%, and 2.1% next year against 2.2%, before strengthening to 2.5% in 2013.
It expects unemployment to peak at 2.62m in the final quarter of 2012, up from a forecast of 2.6m; public sector borrowing of £126.9bn in 2011/12 will be £5bn higher than previously predicted; and interest rates will start to rise from next August.
However, Liverpool Chamber of Commerce chief executive Jack Stopforth said: “Despite this, there is no need for doom and gloom.
“We expect prospects to improve over the medium- term and believe that the UK has the potential to recover and thrive.
“But this will depend on creating the right conditions for business to grow.”
