The BCC states that the downgrading of GDP growth reflected ‘a deteriorating outlook for consumer spending and a weaker than expected rebound in business investment’ with investment only forecast to grow by 3.5% in 2022.

The figure is a decrease of 1.6% from the December 2021 forecast of 5.1% and ‘significantly lower’ than the Bank of England’s (BoE) latest projection of 13.75% which was released last month.

The BCC states that the reduction reflects the ‘expected weakening in investment intentions’ from businesses due to rising cost pressures, higher taxes with the National Insurance and corporation tax increase, and weakening business confidence due to the current UK and global economic outlooks.

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