BCC cuts UK 2020 growth forecast

Omkar Godbole FXStreet Contributor

The British Chambers of Commmerce (BCC) has today released its latest economic forecast, downgrading its growth prediction for 2020 to 1.0% from the previous forecast of 1.3% and to 1.2% from 1.4% for 2021.

The business group has upgraded its growth forecast for 2019 to 1.3% from 1.2%, driven by rapid stock-building early in the year. The immediate boost to UK's GDP, however, is forecast to come at the cost of more subdued growth in 2020 and 2021, courtesy of historically-high inventory levels, coupled with weaker business investment.

Busniess investment fell throughout 2018, the longest run since the global financial crisis, before a pick up in early 2019, according to official figures. Looking forward, business innvestment is forecast to contract at a faster rate in 2019 and recover more slowly in 2020 than expected in BCC's previous forecsast.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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