BCC Raises 2010 Growth Outlook For UK

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The British Chambers of Commerce or BCC on Sunday revised its outlook for the British economy.

The business lobby now sees a decline of 4.3% in gross domestic product in 2009, sharper than a 3.8% decline predicted in June. For 2010, the BCC raised its outlook to show a growth of 1.1%, stronger than 0.6% increase projected previously. Economy is then expected to expand 1.9% in 2011.

It said further big increases in unemployment are expected, but at a reduced pace. Unemployment is likely to rise from 2.43 million to a peak of just over 3 million, or 9.6% of the workforce, in mid-2010. That compares to a June prediction which said unemployment would hit 3.2 million.

"The upturn in the economy has probably already started and we could see a relatively strong bounce-back in the next few quarters. But sustaining the recovery will be very challenging and the risks of a relapse are high," said BCC Chief Economist David Kern.

The British Chambers of Commerce or BCC on Sunday revised its outlook for the British economy. The business lobby now sees a decline of 4.3% in gross domestic product in 2009, sharper than a 3.8% decline predicted in June. For 2010, the BCC raised its outlook to show a growth of 1.1%, stronger than 0.6% increase projected previously. Economy is then expected to expand 1.9% in 2011. (Market News Provided by RTTNews)