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The youth unemployment rate will reach to reach 23% by 2013. Encouragement to small trading firms to export, invest and grow to beat unemployment. According to the prediction of a leading group Britain will avoid a double-dip recession however growth will be lower. The growth from business investments and exports will prevent the UK from the second recession and the figures will improve further in 2013. The economy will expand 1.8% but on the other hand unemployment will rise by 8.6%.
In 2011 it was expected the figure to match the 0.8% by this year but The British Chambers of Commerce (BCC) downgraded its forecast for economic growth this year to 0.6%. As per the economic reports the economy still faced tough challenges with debt levels that are sky towering and unemployment set to rise to almost three million at the beginning of next year.
Due to the extra bank holiday in June for the Queen's Diamond Jubilee growth is predicted to be lower than expected in the second quarter of 2012. However there will be high growth figures in the summer because of Olympics in July and August. According to BCC George Osborne, who will present his budget in Parliament on March 21, has scope to help businesses without jeopardizing investor confidence or the U.K.'s top credit rating. The British government should forgo a 5.6 percent increase in business rates due in April and start a program to ease the flow of credit to businesses. Osborne has room to support companies with 4 billion pounds of stimulus. Smaller firms to be encouraged so the trade internationally and deregulation of the labor market. Need cash in this slow growth phase apply with payday loans for bad credit and get cash despite having worst credit history.
According to John Longworth, the BCC's director general, the UK economic forecast underlines the need for the Government to deliver a Budget that will bring confidence to businesses. The recovery of UK economy relies on creating the right conditions to empower businesses to drive growth. Companies need the best possible environment to generate wealth and create jobs. Moreover the service sector of UK grew at a slower pace than expected in February. There is an expectation that interest rates will remain at 0.5% until the final months of 2013, and then to rise gradually to 1% in the second quarter of 2014, after which the economy should return to pre-recession levels.
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