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BCC: Medium economic prospects set to improve

People working in offices in Reading and elsewhere in the country will be pleased to hear that the British Chambers of Commerce (BCC) has said the country’s medium-term economic prospects are improving.

While the chamber downgraded its growth predictions for 2011 and 2012 to 1.3 per cent and 2.2 per cent respectively, chief economist David Kern stressed that the forecast had an overall “positive” message.

“The recovery will gradually gather momentum from the fourth quarter of 2011 onwards, with growth strengthening further in 2013,” he added.

The BCC also suggested that unemployment will be lower than previously expected, stating that it will peak at 2.6 million in mid-2012, slightly down from an earlier forecast of 2.65 million.

Mr Kern stated that businesses in the UK are willing to help drive recovery, however, the government needs to devise a credible strategy to drive growth.

In the first three months of 2011, the UK economy grew by 0.5 per cent, according to figures from the Office for National Statistics.