The British Chamber of Commerce has cut its forecast for UK growth in the light of Brexit, despite recent reassuring data.

The BCC now expects growth of 1.8 percent this year, reduced from March’s forecast of 2.2 percent in March. For 2017, the group is now expecting 1 percent growth in 2017 instead of the 2.3 percent originally forecast.

Whilst the group do not expect a recession, it said that growth prospects would “dampen” as negotiations began for the UK’s exit. By 2018, the UK economy is expected £43.8 billion smaller than before the EU vote.

BCC acting director general, Dr Adam Marshall, commented:

“Although individual businesses continue to report strong trading conditions, the overall picture suggests a sharp slowdown in UK growth lies ahead.”

Recently economic data has been promising, with Bank of England governor saying he was “serene” over the effects of the referendum. Key figures such as retail spending and inflation are set to be released this week and will shed further light on the situation.

12/09/2016