17.09.201802:45:00UTC+00BCC Cuts UK Growth Forecast

The British Chambers of Commerce downgraded its growth expectations for the UK economy citing weaker outlook for trade and investment amid Brexit uncertainties.

Growth forecast for 2018 was lowered to 1.1 percent from 1.3 percent and that for next year to 1.3 percent from 1.4 percent. Meanwhile, the projection for 2020 was kept unchanged at 1.6 percent.

The lobby said net trade is expected to make a negative contribution to GDP growth over the forecast period.

Further, the outlook for investment is more subdued with persistent economic and political uncertainty expected to increasingly weigh on investment intentions. Meanwhile, the labor market is expected to continue to be a source of strength for the economy.

The BCC expects interest rates to rise to 1.25 percent by the end of the forecast period.

"A deal with Brussels won't deliver stronger UK growth on its own," Adam Marshall, director general of the BCC, said. "The Prime Minister and the Chancellor must now pull out all the stops here at home to bolster business confidence, slash costs, and crowd in investment."