BCC Economic Forecast: Upgrade to GDP but UK economy flatlining
The British Chambers of Commerce (BCC) upgrades its 2023 GDP forecast to 0.3%, but economic activity will remain weak throughout the year, according to the organisation’s latest Quarterly Economic Forecast.
In the short term, the BCC is expecting quarterly GDP to remain flat throughout 2023, with three quarters of 0.1% growth and one quarter of no growth – leading to overall growth of 0.3% for the year. This is in line with the Bank of England’s forecast, but more optimistic than the OBR’s. The BCC expects the economy to grow by 0.6% in 2024.
The slight upwards revision from the BCC’s previous Q1 forecast of -0.3% to 0.3% is due to higher levels of household spending and recent increases in overall business investment. Evidence from recent BCC business surveys also showed a rebounding of business confidence at the start of 2023.
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