British Chambers of Commerce Slashes Growth Rate
The forecast for economic growth for 2012 has been slashed from 0.6% to 0.11% by the British Chambers of Commerce. However, the group did increase its forecast for 2012 with a change in figures from 1.8% to 1.9%.
The data was revealed in the latest Quarterly Economic Forecast, released by the British Chambers of Commerce, which coincided with official figures confirming the UK has returned to recession.
BCC director-general John Longworth called for more “enterprise-friendly” action from the Government.
Unemployment will also increase from 2.625 million – or 8.2% of the workforce – to 2.9 million, or 9%, in the third quarter of 2013, driven primarily by continued public sector spending cuts.
Mr Longworth called for the creation of a business bank to provide capital for small business, more infrastructure spending, long-term strategies for aviation and energy, and more deregulation.
Without action the economy will “bump along the bottom” for longer than expected, Mr Longworth said.
Mr Longworth said:
“We need growth and we need it now.”
“If the government works together with the private sector to create the right environment over the long term, we’ll be able to prove once and for all that bold businesses can propel us forward out of stagnation and firmly on the road to recovery.”