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News - 30 May 2013

UK economy forecast improved

The British Chambers of Commerce has upgraded its growth forecasts for the UK economy over the next three years despite warning that growth is still expected to be weak and that the economy faces domestic and overseas challenges.

The BCC said it expected output to increase by 0.9% this year, up from a previous growth prediction of 0.6%. However, this is at odds with the Organisation for Economic Co-operation and Development [OECD] which recently cut its prediction from 0.9% to 0.8% for 2013.

The BCC is predicting growth in 2014 of 1.9% [up from 1.7%], and for 2015 growth of 2.4% [up from 2.2%].

The BCC called on Chancellor George Osborne to use next's month's government spending review to "help create the right conditions to boost enterprise, so that businesses can invest, export, create jobs and drive the recovery".

The BCC wants the government to start spending more on capital projects, saying the money could be found from what he called "unnecessary" welfare spending.


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