The trade organization also warned that Brexit is likely to result in the further depreciation of Pound Sterling, giving British consumers and businesses less purchasing power abroad.
The British Chambers of Commerce (BCC) has downgraded various economic forecasts for Britain to reflect the current political climate, adjusting its forecast for growth in UK gross domestic product (GDP) for 2018 from 1.3 percent to 1.1 percent.
Furthermore, the trade body downgraded its GDP growth forecast for 2019 to 1.3 percent, while opting not to revise its 2020 forecast.
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Highlighting the poor economic outlook on Monday, the BCC said, “Our latest forecast implies that by 2020 the UK economy will have experienced its second weakest decade of average annual GDP growth on record.”
Moreover, the body said it expects other aspects of the UK economy to also perform poorly, blaming its poor GDP forecasts and general pessimism on the “persistent uncertainty” Brexit has brought about and the increasing likelihood of a “disorderly” no-deal Brexit.
“Mounting uncertainty and the cost of doing business in the UK is likely to put a brake on investment intentions, while for exporters a combination of moderating growth in key trading markets and Brexit uncertainty are forecast to limit export activity,” Suren Thiru, head of economics at the BCC said.
Mr. Thiru suggested that sterling could take further hits due to Brexit, potentially driving inflation in the UK.
In recent months, countless other trade bodies and economists have warned of the likely adverse consequences of a hard Brexit, urging the government to do everything in its power to avert such an eventuality.
However, Prime Minister Theresa May has once again insisted that if her Chequers plan is voted down, Britain has no other choice than to leave the EU without a deal in place.
May’s “binary approach” has annoyed and alarmed many politicians and trade leaders, with the TUC claiming she is holding the UK “ransom” in negotiations with Brussels.
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