LONDON: The UK’s growth forecast for this year has been cut from 2.7 per cent to 2.3 per cent by a leading business group today.
The British Chamber of Commerce has warned that that the UK’s economy is a ticking ‘timebomb’ thanks to a surging trade deficit. After a slow first quarter, the BCC downgraded the growth rate, but said it expected the slowdown to be temporary.
John Longworth of the BCC said: ‘It is always disappointing when we have to downgrade our growth forecast, but the unexpectedly low figures from the ONS on Q1 2015 make it unavoidable.
He added: ‘The one area of concern is the increasing trade deficit. The growth we see is built on consumer spend and this has been a systemic weakness for years.
‘Despite good intentions, we are heading the wrong way. The trade deficit is an economic time-bomb waiting to go off.
