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Pre-recession GDP peaks could be reached this year, say British Chambers

UK GDP could reach pre-recession levels this year the British Chambers of Commerce say they adjust growth forecasts for the next two years.

The business body estimate GDP growth will reach 2.8% in 2014, up from their previous forecast of 2.7%; the change based on amendments to historic data from the Office for National Statistics.

Q2 this year could beat the pre-recession 2008 Q1 levels as household consumption and output from the services sector motor the economy.

Despite a positive trajectory set out by the Chambers, business investment in 2016 is expected to fall slightly below its 2008 peaks.

The overall unemployment rate is expected to fall to 6.6% in the final quarter of 2016 while youth unemployment is expected to fall to 17.8% by the same time.

Director general of the British Chambers of Commerce (BCC), John Longworth, welcomed the new estimates, but warned business is not investing enough.

He said: “There is more to do in securing access to finance for growing firms – as this too will be crucial to securing our economic future. So is getting public and private sector funding together to address the crippling gaps in our transport, digital and energy infrastructure.

“We just hope that as the General Election gets closer, politicians are not tempted to abandon a drive for long-term economic security in favour of short-term vote winners. No government over the next decade can afford to get distracted – and our leaders must do everything in their power to ensure the economy goes from being merely good, to being truly great.”

This was posted in Bdaily's Members' News section by Tom Keighley .