British Chambers of Commerce Warns Growth to Drop in 2017

December 12, 2016 Share Print 0

“The business as usual” approach taken by many firms following the Brexit vote has helped boost UK growth this year, but it will not last, the British Chambers of Commerce (BCC) has warned.

The business body expects GDP to grow by 2.1% this year, up from the 1.8% it forecast just three months ago.

But uncertainty over the UK’s EU relationship and higher inflation will “dampen medium term growth,” it said.
It expects the UK’s economy to grow by 1.1% next year, and by 1.4% in 2018.

A separate report on business conditions from accountancy and services group BDO found business output rose for the first time in November after 17 months of decline.

It said this suggested that “for now” the UK economy had stabilised “in a lower gear” than it had been running at before the referendum.

Via BBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.