The GDP forecast for 2025 remains at 1.0% growth following a slight improvement to 1.1% this year with that figure likely to be matched in 2026.
This is according to the latest Quarterly Economic Forecast (QEF) produced by the British Chambers of Commerce (BCC) and available HERE.
It shows that the overall profile remains flat, due to a poor trade outlook and business investment. Citing ongoing trade barriers with the EU and wider trade tensions, the BCC sees both imports and exports contracting in 2024, by -0.6% and -1.1% respectively, before a gradual improvement in 2025 and 2026.
Exports are expected to grow in 2025 by 0.5%, with imports -0.7%. Both are expected to grow in 2026, with imports 1% and exports 1.1%.
Chair of the BCC Economic Advisory Council, Vicky Pryce, said: “The BCC’s latest forecast shows that while the UK economy will perform better this year, it’s unlikely to be heading into the fast lane any time soon. Although domestic demand should be helped by a gradual reduction in interest rates and by rises in real wages as inflation stabilises, firms will still struggle to invest.”
This is, she explained, due to continuing global economic and political uncertainty, together with a downbeat Government assessment of its fiscal position and warnings of tough decisions in the October budget.
British Chambers of Commerce
The British Chambers of Commerce (BCC) sits at the heart of a business network that spans the length and breadth of the UK, with links to markets across the world.
