BCC cuts UK economic growth forecast from 0.6 per cent to 0.1 per cent
02 Jun 2012
The British Chambers of Commerce (BCC) has cut its economic growth forecast for the year, from 0.6 per cent to 0.1 per cent.
The group, representing over 100,000 businesses, however, raised its forecast for 2013 from 1.8 per cent to 1.9 per cent.
The data, in the BCC's latest Quarterly Economic Forecast, comes after official figures showed that the UK had returned to recession.
According to BCC director-general John Longworth, a more "enterprise-friendly" action from the government was needed.
Unemployment is also expected to increase from 2.625 million - or 8.2 per cent of the workforce - to 2.9 million, or 9 per cent, in the third quarter of 2013, as public sector spending cuts continue.
Longworth called for the creation of a business bank for providing capital for small business, higher infrastructure spending, long-term strategies for aviation and energy, and greater deregulation.
