LONDON, Feb 27 (Reuters) - More than 60% of British
businesses are optimistic about the country's economic growth in
the medium term and their own revenues in the next few years, a
survey showed on Monday, challenging some of the gloomy
forecasts for the UK economy.
About 61% of over 1,500 business leaders expect economic
growth to be "somewhat or significantly better" in 2025,
according to the Boston Consulting Group Centre for Growth's
inaugural business survey.
Some 63% also think their revenues will grow over the next
three years.
The Bank of England said this month that Britain's weak
productivity growth means the economy can probably only grow by
about 0.7% a year in 2024 and 2025 without generating
inflationary heat. It also forecast a recession starting in
early 2023 and lasting into early 2024.
"It is easy to get downbeat about the UK's prospects both in
the short and medium term but those running our businesses tend
to be more optimistic," Raoul Ruparel, director for the BCG
Centre for Growth, said. "UK businesses are undoubtedly feeling
squeezed, but they're still standing."
Data for the survey was collected between Jan. 11 and Feb.
2, when the BoE announced its latest interest rate hike and
economic forecasts.
The survey, covering businesses ranging from sole traders to
companies with more than 50 million pounds ($60 million) of
annual revenues, also showed executives thought inflation would
be persistent this year and 56% said they would continue to
increase prices over the next six months.
More than three-quarters of respondents expected their
headcount to stay the same or grow over the next 12 months,
while 20% thought they would cut staff.
The BoE expects a rise in unemployment to contribute to a
fall in inflation which is running at more than 10%.
($1 = 0.8365 pounds)
(Reporting by Sachin Ravikumar
Editing by William Schomberg)
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