Although its performance will remain among the G7 economies with the worst till 2020, the UK has had some improvements in its growth forecast according to the British Chambers of Commerce (BCC).
There have been some changes to the previous GDP forecasts made by the BCC. The new forecasts see growth from 1.1% to 1.4% for 2018, 1.3% to 1.5% in 2019, and a 1.6% growth for the year 2020.
This improvement in the level of growth is a result of a change in the consumer spending for the years in concern.
It also states that the global growth will maintain the positive performance of UK's export.
With the prediction of a continued rise of imports, the GDP growth of the UK will not be impacted to a great extent by the net trade. There is also no indication that the net trade position of the UK will experience any effect of a sterling boost.
All through the period which this forecast covers, the GDP growth of the UK has been stated to fall at a value which is lower than the historical average.
Director General of the British Chambers of Commerce, Dr. Adam Marshall commented that there should be better results from the UK economy as an impact of the continued global growth. Despite this fact, he also mentioned that there had been positive output from individual businesses.
He also stated that in recent months, the UK had experienced a more favorable environment as export demands have risen thanks to the strong global conditions but there are uncertainties about future growth in a situation where major trading partners begin to have a lower performance.
Other issues that have become bothersome include shortage of labor and lack of sustained skills. Getting the good recruits and also making them stay seems like a difficult task.
The issue of Brexit seems to be the major concern of the government at the moment which has led to a neglect of the basic problems in the UK. This absence of a deliberate effort poses a serious threat as one of the limiting factors to the growth of the UK.
Over the period which the forecast covers, the BBC hints on a slight improvement in productivity is also expected but economic problems like low infrastructural investments and a shortage of skill will hinder this increase.
According to the body, the maximum inflation level has been attained, and as the effect of the post-EU referendum weakens, the inflation rate is expected to begin to drop.
There is also a prediction that in the second quarter of 2018, the official interest rates of the UK will grow to 0.75% while the first quarter of 2019 will be the next time another increase will occur.
In contrast to the forecast by the Office for Budget Responsibility, the amount that will be borrowed by the UK public sector during the next three year period according to the BBC will be £13.4bn more than that initially released.
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