Eurozone Crisis puts UK Recovery at Risk

The UK economy will grow at a faster rate than expected this year, but the Europe-wide debt crisis may inhibit recovery in 2011, the British Chambers of Commerce (BCC) has warned. There is even still a risk of a double-dip recession if the coalition Government does not take strong measures to reduce UK debt and create helpful conditions for businesses, BCC spokesman Sam Turvey said this week. The caution came as the BCC revised its March GDP growth forecast from 1% to 1.3% following better than expected performance in the UK’s manufacturing sector and an increase in exports. At the same time, however, the BCC reduced its growth prediction for 2011 from 2.1% to two%. The chief threat to UK trade is the debt crisis in the eurozone, which is liable to hamper the UK’s exports. Unde... »