The UK economy has “lost momentum” and will achieve only sluggish rates of growth for the next three years, according to forecasts from the British Chambers of Commerce.
The trade body said it expected annual growth of 0.6% this year and a slowdown to 0.4% in 2024, before a slight recovery back to 0.6% in 2025.
The BCC, which represents regional chambers of commerce across the UK, said inflation would fall back to the Bank of England’s 2% target only at the end of 2025.
Business investment would also remain subdued despite government tax breaks, with capital spending forecast to contract by 0.8% next year.
The BCC’s forecasts are more optimistic than projections from the Bank of England, which has forecast no growth for the next four quarters.
