The change is largely a reaction to the surprise fall in GDP recorded by the Office for National Statistics during the final three months of last year.
Also factored into the equation was the increased likelihood of interest rates being raised in the near future, in order to combat rising UK inflation.
The BCC has also increased its unemployment prediction for early 2012 from the December forecast of 2.60 million to 2.65 million.
It said the GDP downturn had led to a rise in the number of people out of work, but a rise in economic activity during 2011 would encourage more people to seek a return to the jobs market.
In better news, the organisation has made an upwards revision to its GDP growth forecast for 2012, which rises from 2.1 per cent to 2.3 per cent.
David Frost, director general of the British Chambers of Commerce, commented that British businesses will welcome the government's desire to boost enterprise, and reduce red tape, but these words must be backed by action.
"While we support efforts to reduce the UK’s deficit, these measures alone will not deliver a sustainable recovery. The Budget must commit to explicit policies that will help firms thrive," he stated.
"This is the time for the government to deliver on its promises and ensure businesses can invest, export and create jobs. It is right to persevere with implementing its tough deficit-cutting plan and we expect the private sector to absorb these measures, given the right supportive policies in the Budget."
Mr Frost said this would allow growth to strengthen towards the end of this year and into 2012. Meanwhile, the BCC has predicted quarterly economic growth of 0.6 per cent for the January to March 2011 period. For the latest updates PRESS CTR + D or visit Stock Market news Today
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