The British Chamber of Commerce says growth in the UK economy for this year will reach its highest level seen since 2007 as it makes a further upgrade to GDP forecasts.
Growth in 2014 is now expected to reach 3.2 per cent, according to the BCC, up from a previous forecast of 3.1 per cent and marking a seven year high for UK GDP.
The BCC has also increased its forecast for growth in 2015 with GDP now estimated to reach 2.8 per cent next year compared to a previous estimate of 2.7 per cent.
However the BCC continues to anticipate a slowdown in the UK economy in 2016 due to a “deceleration” in household consumption and falling public spending, keeping its growth forecast for the year unchanged at 2.5 per cent.
BCC director general John Longworth says these latest upgrades confirm that the UK “has become one of the fastest growing developed economies” when looking at short term growth but warns that the country must ensure this growth is not just “a flash in the pan.”
He says: “The task at hand is to ensure that the stellar 2014 growth is not a flash in the pan. We need to invest and export more, innovate, and build.
“The UK must aim higher than accepting growth rates that simply go back to where they were before the recession, or worse – fall even lower. If we are to maintain a world-leading growth performance, we need a long-term partnership between government and business – with ministers unblocking infrastructure projects and improving access to finance so firms across the UK can invest, create jobs and export.”