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The British Chambers of Commerce has minimize its UK growth forecast for 2018, warning the economy faces its weakest 12 months since the monetary disaster.

The employers' group forecast 2018 GDP growth of 1.3%, down from a earlier forecast of 1.4%, and minimize its forecast for 2019 from 1.5% to 1.4%.

The BCC stated there was a "lacklustre outlook" for shopper spending, enterprise funding and commerce.

It stated the following few years will "be a testing time for business in the UK".

Uncertainties round Brexit, rate of interest rises, threats of commerce wars and rising oil costs had been all hurting sentiment, the BCC stated.

If the forecast for this 12 months is realised it "will be the weakest calendar year growth since 2009, when the economy was in the throes of the global financial crisis", the BCC stated.

It added: "The BCC urges the government to focus as much as possible on the domestic business environment, reducing the uncertainty that firms face, and take action on skills shortages and poor mobile connectivity, which lower productivity and hold UK businesses back."

Wake-up name

The group's director-general, Adam Marshall, stated: "A decade on from the beginning of the monetary disaster, the UK now faces one other prolonged interval of weak growth amidst a backdrop of each home and world uncertainty.

"Our forecast should serve as a wake-up call to governmentas it demonstrates that 'business as usual' is not an option when it comes to the economy."


Analysis: Kamal Ahmed, BBC economics editor

After poor figures on development and manufacturing and the announcement of main job losses on the excessive avenue, fears that the economy has hit a vital weak patch are rising.

And there may be as but little signal of the "bounce back" many predictedtogether with the Bank of Englandafter the punishingly chilly climate of February and March delayed constructing tasks and saved consumers at house.

The BCC stated that Brexit uncertainty was affecting companies, with enterprise funding anticipated to fall by greater than half between 2017 and 2018.

Growth within the important providers sectorwhich makes up 80% of the economycan also be anticipated sluggish to 1.2%, the bottom stage since 2010.

The main query is how lengthy this weak patch will not stop for.

That is more likely to rely upon these EU negotiations and whether or not the welcome, although small, rise in actual incomes begins to feed via to larger ranges of shopper confidence and better ranges of spending.


The BCC's head of economics, Suren Thiru, stated the group's newest forecast means that the lack of momentum within the UK economy within the first three months of 2018 "is more than just a temporary soft patch".

He also stated that UK growth was set to stay effectively under its historic common for the foreseeable future until motion was taken.

Consumer spending could possibly be extra subdued within the close to time period as a result of a mixture of sluggish actual wage growth and stretched family funds.

And trading circumstances for UK exporters may develop into more difficult as growth in key markets begins to decelerate, he stated.

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