6/17/2019, 6:50 AM (Source: TeleTrader)
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BCC: UK growth to slow in next two years

The British Chamber of Commerce (BCC) warned in its latest report that the United Kingdom's economic growth is going to slow down in the two following years. It downgraded the growth forecast for 2020 from 1.3% to 1.0%, and from 1.4% to 1.2% for 2021. The forecast for 2019 has been upgraded from 1.2% to 1.3% "driven by the exceptionally rapid stock-building early in the year."

The report cited exchange rate volatility, Brexit uncertainty, and a subdued global economy as the main reasons for a downward trend in trade in the near future. Business investment is expected to falter as well, while consumer spending should remain resilient due to low unemployment and predicted earnings growth.

"While politicians are distracted, businesses are left with no choice but to try and prepare for the unwanted possibility of leaving the European Union on 31st October without a deal and transition period. Businesses are putting resources into contingency plans, such as stockpiling, rather than investing in ventures that would positively contribute to long-term economic growth. This is simply not sustainable. Business communities expect the next Prime Minister to quickly find a sensible and pragmatic way forward to avoid a messy and disorderly Brexit," commented BCC Director General Adam Marshall.

Breaking the News / DJ