The UK’s recent economic growth may only be short term as the economic recovery is “not yet secure”, the British Chambers of Commerce (BCC) has said.
The BCC’s economic survey for the first quarter found that UK export order and sales in services were at all-time highs. Manufacturing is also growing consistently.
However, chief economist at the BCC, David Kern, said the recovery relied too heavily on consumer spending and personal debt levels were “too high”.
He told the BBC:
“UK growth is still reliant on consumer spending, driven by a resurgent housing market and declining savings ratio. Investment and exports must play a larger contribution to our economic future, or else there is a risk that our recovery could stall.”
Mr Kern also said personal debt levels “needed to fall” and that it would be hard to maintain growth in the medium tern without “significant structural changes to our economy.”
The industry body’s report showed an improvement in export orders over the past two years, yet the UK must do more to increase the amount of export support we have.
George Osborne announced on Monday that £6 million will be invested in boosting the number of trade advisers to medium-sized businesses.
Photo by Dimitry B