News & Blog

Read the latest business news, blogs and thought leadership articles from our members, as well as updates on the Edinburgh Chamber of Commerce's work in the city.

News & Blog

British Chambers of Commerce: Global factors mean growth downgrades are no surprise

Posted: 4th February 2016
  • Bank of England downgrades UK GDP forecast for 2016 from 2.5% to 2.2%, and in 2017 from 2.7% to 2.4%
  •  Inflation forecast downgraded to 1.2% in Q1 2017, down from 1.5%

 Commenting on the UK Inflation Report published today by the Bank of England, David Kern, BCC Chief Economist, said:

 “In the face of growing international headwinds, as reflected in the weakening business sentiment recorded in our own surveys, it is not surprising that the Bank of England has downgraded its growth and inflation forecasts.

“Inflation is now predicted to stay below 1% throughout this year, and the UK economy is projected to grow at the same rate as last year.

“The government’s fiscal plans in the Autumn Statement were based on sustained growth. These downgrades should serve as a warning that this is not guaranteed, and more needs to be done to support the economy in the face of global trends.

“Against this background the bank’s calculations indicate that interest rates will only edge up very slightly next year, which should help to reassure businesses and consumers.”

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
Read more here