BoE and Govt need to act as economy 'worsens' - BCC

In its May 2008 Quarterly Economic Forecast, British Chambers of Commerce economic adviser David Kern says while recession is unlikely and can be avoided, British businesses face a difficult 2008 and 2009. The BCC predicts a “significant slowdown” over the next 6 to 7 quarters, with UK GDP growth forecasted to plunge from 3% last year, to 1.7% in 2008 and 1.6% in 2009. Kern says the main driver of the UK GDP slowdown is expected to be a very sharp deceleration in consumer spending growth, due to falling house prices and the squeeze on household disposable incomes. The BCC expects the ...