UK Economic Growth Forecast Upgraded
The British Chambers of Commerce (BCC) has predicted that the UK economy will grow faster than expected this year and next year. It was predicted that 2014 would see an economy growth of 3.1% but it is now expected to see an increased growth of 3.2%.
This prediction has been altered due to a stronger labour market and higher expected growth for the second half of the year. However, UK exports are predicted to weaken which could consequently affect long term growth. Therefore, the UK needs to invest and export more, innovate and build.
The predicted growth of the UK economy has come well above the 2.7% forecast set by the Office for Budget Responsibility in March.
As well as a growth for 2014, the BCC has also revised its figures for 2015 and altered them so the growth is now looking to be 2.8% rather than the 2.7% previously estimated. This is largely due to strong employment figures. The figures for UK exports look to decline further next year going from 1.9% down to 0.8%.