'Fragile' UK economy 'stuck in first gear', BCC warns

07 Sep 2023

The British Chambers of Commerce (BCC) has warned that the UK economy is 'fragile' and is 'stuck in first gear'.

The business group has marginally upgraded its 2023 GDP forecast to 0.4%, and predicts that economic activity will remain 'very weak' throughout 2024 and 2025, with growth of just 0.3% in 2024.

Research published by the BCC shows that core inflation is the top concern for UK businesses. However, fewer firms now expect price rises over the coming months.

Commenting on the forecast, Vicky Pryce, Senior Member of the BCC's Economic Advisory Council, said: 'The BCC's latest forecast shows the UK economy is continuing to teeter on the edge of a recession. With growth predicted to hover so close to zero for three years, it will still feel a lot like one for most people and businesses.

'The impact this will have on consumer spending, coupled with a poor trade performance, will only generate more uncertainty for firms. There is currently little on the table to provide companies with any crumbs of comfort.

'As we head towards an election next year, politicians will have to show how they will work with the business community to find solutions.'