British Chambers of Commerce cuts UK growth forecasts

The UK economy is expected to grow less than previously estimated this year amid a global economic slowdown, the British Chambers of Commerce said on Friday.

The BCC has forecast gross domestic product will rise 2.2% in 2016 and increase 2.3% in 2017, compared to December projections for 2.5% growth this year and next.

The body blamed weaker-than-expected growth across “most areas” of the economy, reflecting a general global slowdown.

“Our forecast should stand as a wake-up call,” said Adam Marshall, acting director general of BCC. “The UK’s economic performance is reasonably good when measured against our main competitors, but it’s only mediocre when compared against long-term trends.”

Marshall called on Chancellor George Osborne for “sustained government action” at next week’s 2016 Budget in the face of a slowing economy and further potential risks on the horizon.

“Wherever possible, given very real fiscal constraints, the Chancellor must use his forthcoming Budget to bring forward road, rail, and digital infrastructure projects that would help UK companies do more business,” he said.

“He must also avoid adding further to the long list of new business costs and taxes introduced over recent months, which clobber firms before they turn over a single pound and undermine investment.”

The BCC made no mention of Britain’s referendum on its membership in the European Union.

BCC director-general John Longworth stepped down this week after saying he backed Brexit, breaching the body’s neutral position on the issue.