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Britain to avoid double-dip recession: BCC
Last Updated(Beijing Time):2012-03-05 20:21

Britain will avoid a double-dip recession, but the growth will be weak in 2012, said the British Chambers of Commerce (BCC) on Monday.

In its quarterly economic forecast report, BCC revised down its prediction for Britain's GDP growth in 2012 to 0.6 percent from the previous 0.8 percent, lower than the 0.8-percent growth in 2011.

"Britain's economy faces serious challenges, with problems in eurozone creating difficulties for exporters, combined with dampened domestic demand," said BCC Director General John Longworth.

The organization believed that main drivers of Britain's growth over the next two years would be net exports and business investment.

However, debt levels are still too high and the process of de-leveraging will depress demand and will result in a relatively long period of low growth, it said.

BCC expected Britain's GDP to record very little growth in the first two quarters of 2012, only about 0.2-0.4 percent in total.

According to its forecast, Britain's economic growth will strengthen to 1.8 percent in 2013.

Consumer spending, after falling by 0.8 percent in 2011, is forecast to record positive growth of 0.8 percent in 2012 and 1.7 percent in 2013.

Source:Xinhua 
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