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The leading business group has downgraded its UK GDP growth expectations for 2020 to 0.8%, from its previous forecast of 1% (stock photo)

The leading business group has downgraded its UK GDP growth expectations for 2020 to 0.8%, from its previous forecast of 1% (stock photo)

The leading business group has downgraded its UK GDP growth expectations for 2020 to 0.8%, from its previous forecast of 1% (stock photo)

UK economic growth is expected to slow sharply in 2020 amid disruption caused by the impact of coronavirus, according to the latest economic forecast by the British Chambers of Commerce (BCC).

The leading business group has downgraded its UK GDP growth expectations for 2020 to 0.8%, from its previous forecast of 1%.

Outside of the 2008/09 financial crisis, this would be the weakest full-year growth out-turn since 1992 and down sharply from UK GDP growth of 1.4% in 2019.

A lack of clarity on the UK's future trading relationship with the EU and other partners around the world and a struggling global economy is also predicted to limit UK's near-term growth prospects, BCC has also warned.

Suren Thiru, head of economics at the BCC, said: "Our latest forecast indicates that the UK economy faces a challenging short-term outlook.

"It is increasingly likely that the boost from higher government spending and more political certainty, will be surpassed over the near-term by the negative impact of coronavirus on the UK economy."

Meanwhile, Adam Marshall from the BCC said the Chancellor and Bank of England must act quickly to support businesses.

Belfast Telegraph