BCC cuts UK GDP forecasts and calls for fiscal stimulus

The BCC predicts the UK will escape a double-dip recession but has lowered its prediction for 2012 growth from 0.8% to 0.6%, and said Chancellor George Osborne must be as concerned about growth as he is about deficit reduction. "With public sector borrowing likely to undershoot the OBR forecast by approximately £8bn, a fiscal stimulus totalling some £4bn would be consistent with maintaining strong UK market credibility and would not endanger our AAA-credit rating. The critical priority is to sustain growth while cutting the deficit," said David Kern, chief economist at the BCC (pictured)...