The British Chambers of Commerce (BCC) released its U.K. GDP growth forecast on Friday. The U.K. economy is expected to grow at 2.2% in 2016, down from the previous forecast of a 2.5% rise, 2.3% in 2017, down from the previous forecast of a 2.5% gain, and 2.4% in 2018.

The downgrade was driven by the weaker than expected growth across most areas of the economy.

The BCC noted that the U.K. economy is expected to expand moderately and at a relatively steady pace over the next three years, adding that services and consumer spending will remain the key growth drivers.

"In the face of a slowing economy, and with further potential risks on the horizon, there is a case for sustained government action to improve prospects for business," Dr Adam Marshall, Acting Director General of the British Chambers of Commerce, said.

"The UK's economic performance is reasonably good when measured against our main competitors, but it's only mediocre when compared against long-term trends," he added.