Britain's economy will grow at a faster pace than current forecasts, one of the UK’s leading business and industry lobby groups predicted today.
Upgraded forecasts from the British Chambers of Commerce said the UK’s economy is now set to rise by 0.8% in 2024, compared to previous predictions of a 0.5% jump.
Moving into 2025, the BCC predicts the economy will expand by 1%, against previous forecasts of 0.7%.
Driving the improved forecasts was a better-than-expected start to the year, with the first quarter seeing output growth of 0.6%, its fastest pace since 2022.
At the end of last year, the UK slipped into a small recession, but economists at BCC believe the country is en route to slight recovery – although longer-term prospects “are unlikely to be strong”.
Growth forecasts for 2026 have been maintained at 1%.
“There is life in the UK economy but if it is to gain momentum then it must be nurtured,” Vicky Pryce, chair at the BCC’s economic advisory council said.
Much of the recovery, along with the potential boost of lowered interest rates, is expected to come in the second half of the year - after the UK election is complete.
“Businesses will be watching for politicians to show they have sustainable long-term economic plans. These must play to the UK’s strengths and give companies confidence,” Pryce added.