London - XINHUA
The British Chambers of Commerce (BCC) Monday upgraded its economy growth forecast for Britain for the next two years, expecting the country's GDP to exceed its pre-recession peak in the second quarter of 2014. The BCC upgraded British GDP growth forecast from 2.7 and 2.4 percent in 2014 and 2015 to 2.8 and 2.5 percent respectively, while the inflation rate is expected to remain at 2 percent in the period. It also expects the first increase in Britain's interest rates in the third quarter of 2015 to 0.75 percent. The latest quarterly economic forecast conveys increasing business optimism, with GDP expected to exceed its Q1 2008 pre-recession peak in the next quarter, said BCC. The commerce chamber expects the unemployment rate to fall from 7.2 percent in the fourth quarter of 2013 to 6.0 percent in the last quarter of 2016. But youth unemployment rate is expected to remain close to three times the national average. Business investment is expected to record strong growth of 6.6 and 5.7 percent in these two years. Also on Monday, economic research company Markit in its global business outlook survey report said: "The UK was particularly notable with optimism reaching a post-crisis high and exceeding that of all major developed and emerging economies with the exception of Brazil." John Longworth, BCC director general, said "Our economic recovery is gaining momentum. Businesses across the UK are expanding and creating jobs, and our increasingly sunny predictions for growth are a testament to their drive and ambition." Though business outlook turning more optimistic, the BCC warned that the unacceptably high level of youth unemployment and the low investment growth might encumber sustainable economic recovery. With network of 53 accredited chambers of commerce across the country, the BCC represents thousands of businesses of all sizes and within all sectors in Britain.