Britain will remain in recession for the rest of the year, business leaders today predicted, as they called for a “new model economy” to harness growth.
Setting out its latest economic projections, the British Chambers of Commerce (BCC) forecast a 0.4 per cent contraction in output in 2012, well down on the 0.1 per cent growth cited previously. That compares with the Bank of England’s recent forecast for no growth this year.
The BCC has also revised its 2013 prediction sharply downwards, from growth of 1.9 per cent to just 1.2 per cent. It said headwinds from a slowing global economy, the crisis in the eurozone and domestic austerity measures were “complicating” the UK’s recovery prospects.
But the lobby group pointed to a “reserve of business confidence” that could be harnessed and demanded immediate measures to support investment, together with a “radical” long-term growth plan.
BCC director-general John Longworth said: “Politicians need to get some political backbone and show leadership. If they put Britain above politics, they will be rewarded for it in the long run. We need an economic action programme so that Britain can excel, and make its way in the world.”
Meanwhile, the CBI believes growth will return towards the end of the year and “pick up a little pace” in 2013. It yesterday forecasted a 0.3 per cent fall in gross domestic product in 2012, compared with May’s prediction for 0.6 per cent growth.
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Friday 24 May 2013
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