The British Chambers of Commerce (BCC) has downgraded various economic forecasts for Britain to reflect the current political climate, adjusting its forecast for growth in UK gross domestic product (GDP) for 2018 from 1.3 percent to 1.1 percent.
Furthermore, the trade body downgraded its GDP growth forecast for 2019 to 1.3 percent, while opting not to revise its 2020 forecast.
The trade organization also warned that Brexit is likely to result in the further depreciation of Pound Sterling, giving British consumers and businesses less purchasing power abroad.
Moreover, the body said it expects other aspects of the UK economy to also perform poorly, blaming its poor GDP forecasts and general pessimism on the “persistent uncertainty” Brexit has brought about and the increasing likelihood of a “disorderly” no-deal Brexit.
In recent months, countless other trade bodies and economists have warned of the likely adverse consequences of a hard Brexit, urging the government to do everything in its power to avert such an eventuality.
However, Prime Minister Theresa May has once again insisted that if her Chequers plan is voted down, Britain has no other choice than to leave the EU without a deal in place.
Alongside the forecast, the BCC warns the Prime Minister and Chancellor that the government’s upcoming Autumn Budget cannot be a ’business as usual’ affair. Ministers must go all-out to incentivise and kickstart business investment at a crucial turning point for the UK.
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