BCC Revises Economic Growth Estimates for Britain in 2019, 2020
According to recently revised forecasts by the British Chamber of Commerce (BCC), the British economy is expected to grow at 1.2% in 2019, down from the previous forecast of 1.3% in June. The BCC has also revised its economic growth forecast for next year from 1.0% down to 0.8%.
These latest estimates assume that Britain manages to leave the EU with a deal in hand, which means that growth could be far less in the event of a no-deal Brexit. BCC’s estimates for 2020 economic growth have come in lower than economists’ expectations for a 1.1% growth, and would be the slowest pace of growth seen since the last financial crisis over a decade ago.
In Q2, Britain’s GDP had contracted by 0.2% as a fallout of the stockpiling effect ahead of the original March 29 deadline for Brexit. However, BCC estimates the GDP to grow by 0.3% in Q3 2019 over optimistic economic figures.
The BCC also expects wage growth to remain under 3% on average for the next two years while inflation could remain at a little above 2%, and that the BOE’s next interest rate hike would only come sometime in 2021.
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