Exports key to sustained recovery, says BCC
29 Aug 2014
The British Chambers of Commerce (BCC) has warned that this year’s improved economic conditions may suffer unless exports and investments are given a boost.
Director General of the BCC, John Longworth, said: ‘Our forecast confirms that Britain has become one of the fastest-growing developed economies. We are leading, rather than following, other major economies when it comes to short-term growth.
‘The task at hand is to ensure that the stellar 2014 growth is not a flash in the pan. We need to invest and export more, innovate, and build. It is disappointing that we have downgraded export growth for the next two years as a strong international trade performance is key if we are to steer away from a reliance on consumer spending’.
The BCC has upgraded its GDP growth forecasts from 3.1% to 3.2% in 2014, and from 2.7% to 2.8% in 2015. This year would mark the first time since 2007 that growth has exceeded 3%.
Chief Economist at the BCC, David Kern, added: ‘Though our GDP forecasts have been upgraded we are predicting a slight downturn in the pace of growth from next year. This reflects deceleration in household consumption, and falling public spending as a share of GDP. Together, these factors will more than offset the increased contributions to GDP growth from investment and trade’.