RTTNews - Thursday, the British Chambers of Commerce slashed its GDP forecast for the U.K. economy. The economy is now expected to shrink 3.8% this year compared to its earlier estimate of 2.8% contraction. A very small growth of 0.6% is expected for 2010.
The business lobby said, there are growing signs that the worst phase of the recession is behind us. However, the BCC warns that recovery is neither imminent nor guaranteed, arguing that prospects are still hazardous.
The BCC predicts the U.K. unemployment to rise to 3.2 million, or just over 10% of the workforce in the second half of 2010. This was unchanged from the March forecast.
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