London, Sep 12 (IANS) UK’s economy will grow 1 per cent this year, down from the March estimate of 2.3 per cent, due to the fallout of the country’s vote to leave the European Union (EU), according to the British Chambers of Commerce (BCC).
In its first set of forecasts since the vote to leave the EU, the BCC on Monday more than halved its GDP growth prediction which would mark the worst economic performance since 2009, when the UK was emerging from a deep recession sparked by the global financial crisis, the Guardian reported on Monday.
Recent economic indicators suggested that activity has rebounded from an initial post-referendum dive but the BCC’s gloomy outlook shows that businesses remain nervous about the prospect of protracted negotiations to leave the EU and about potential trade deals.
BCC’s new forecasts put it broadly in line with the Bank of England, which also sees a sharp slowdown in GDP growth next year to just 0.8 per cent from 2 per cent this year.
In its first forecast since the referendum, the BCC added that Britain would avoid an economic recession, but admitted that the business world is still evaluating the impact of the vote.
“Although individual businesses continue to report strong trading conditions, the overall picture suggests a sharp slowdown in UK growth lies ahead,” EFE news quoted BCC acting director general Adam Marshall as saying.
Marshall also urged British authorities to set a “clear timetable” on exit negotiations with the EU.
The government led by new Prime Minister Theresa May said it will not trigger Article 50 of the Lisbon Treaty — which provides for a two-year period to negotiate an exit from EU — until the beginning of next year.