BoE and Govt need to act as economy 'worsens' - BCC

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UK economic prospects for 2009 have ‘worsened' and the Bank of England and Government need to act proactively to counter threats to growth, the British Chambers of Commerce (BCC) warns.

In its May 2008 Quarterly Economic Forecast, British Chambers of Commerce economic adviser David Kern says while recession is unlikely and can be avoided, British businesses face a difficult 2008 and 2009. The BCC predicts a “significant slowdown” over the next 6 to 7 quarters, with UK GDP growth forecasted to plunge from 3% last year, to 1.7% in 2008 and 1.6% in 2009. Kern says the main driver of the UK GDP slowdown is expected to be a very sharp deceleration in consumer spending growth, due to falling house prices and the squeeze on household disposable incomes. The BCC expects the UK ...

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