The British Chambers of Commerce (BCC) has upgraded its forecast for the country’s short term economic prospects. But it said the pace of growth may slow sharply when the impact of tough government measures kick in. The business group expects gross domestic product (GDP) to grow by 1.7 per cent this year and by 2.2 per cent in 2011 compared with earlier predictions of 1.3 per cent and 2.1 per cent.Figures on Friday suggested U.K GDP grew 1.2 per cent in the second quarter of 2010. This figure was greater than initially thought and was boosted by a strong performance by the construction sector.Later this year the government spending review will outline some of the cutbacks it intends to make as it tries to reduce the budget deficit. The BCC predicted that the coalition's austerity programme and worsening global background are likely to dampen Britain's medium-term prospects saying economic growth would slow to 1.8 per cent in 2012.BCC Chief Economist David Kern said if successful, the forceful deficit-cutting strategy announced in the emergency budget would put the UK on a path of sustainable and affordable recovery, and could help create a leaner and fitter economy.