"The business as usual" approach taken by many firms following the Brexit vote has helped boost UK growth this year, but it will not last, the British Chambers of Commerce (BCC) has warned.
The business body expects GDP to grow by 2.1% this year, up from the 1.8% it forecast just three months ago.
But uncertainty over the UK's EU relationship and higher inflation will "dampen medium term growth," it said.
It expects the UK's economy to grow by 1.1% next year, and by 1.4% in 2018.
A separate report on business conditions from accountancy and services group BDO found business output rose for the first time in November after 17 months of decline.
It said this suggested that "for now" the UK economy had stabilised "in a lower gear" than it had been running at before the referendum.
However, it said, business optimism was continuing to fall, and it expected "a bumpy road ahead in 2017 for British businesses and the economy".
'Business as usual'
The BCC said its upgraded growth forecast for this year was driven by the stronger-than-expected performance of the economy in the third quarter when the economy grew by 0.5%.
The 1.1% growth forecast for next year is a slight upgrade from the BCC's previous forecast of 1%. However, the business group said this would still mark the weakest annual rate of growth for the UK since the 2008 financial crisis.
BCC director general Dr Adam Marshall said firms' "business as usual" approach since the EU referendum had helped keep conditions buoyant so far, but it expected the fall in the value of sterling to start to have a greater impact.
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http://www.bbc.co.uk/news/business-38284554
