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.
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