Summer Should Signal Pre-Recession Levels for UK Economy

Experts across the nation have told everybody this week that by the summer the UK economy should be back to pre-recession levels. At the RTA Business blog we ask what exactly this means and what it could mean for the business sales industry.

Business lobby group The British Chamber of Commerce (BCC) has gone on record this week stating that the overall size of the UK economy will return to pre-recession levels by the time we hit the summer. Specifically, they said that the largest measure of economic size, GDP, will exceed the level it was measured at when 2008 began, before the financial crash.

The BCC has now actually upgraded its economic growth forecast for the UK economy for 2014. Whilst it originally stood at 2.7%, it has now risen to 2.8% on the back of a slew of strong data about the trajectory of UK business.

Furthermore the BCC has predicted a strong year for the finance industry in 2015. They have upgraded their 2015 growth forecast from 2.4% to 2.5% and have also predicted that the end of 2015 will see the end of the Bank of England scrap their policy of keeping interest rates unusually low. The BCC predicts that the Bank will raise interest rates from 0.5% to 0.75%.

BCC director general John Longworth commented on these figures. Longworth said that "our economic recovery is gaining momentum." He then elaborated by saying that: "Businesses across the UK are expanding and creating jobs, and our increasingly sunny predictions for growth are a testament to their drive and ambition."

It’s also notable that back in December, when the BCC made its original forecasts on UK growth, they said that the nation would reach pre-recession levels of growth by autumn; now they’re saying it’ll be by summer.

However it’s not all good news. The BCC also warned of unacceptably high levels of youth unemployment. Longworth said in the  issue that: "We urge the chancellor to use this month's Budget wisely by incentivising businesses to hire young people so that the next generation of workers are not left behind."

So it’s quite clear from these figures that the economy is only set to expand in 2014; this in turn will help businesses grow which can only benefit the business acquisition industry. More business owners will be looking to buy due to stronger economic prospects, and those looking to sell will be in a better position to do so. It really might be a record summer this year in the UK!