It now expects output to rise by 0.9% this year, up from a previous prediction of 0.6%, the BBC reports.
GDP for 2014 will likely be raised from 1.7% to 1.9%, and from 2.2% to 2.4% for 2015. It said the services sector is likely to outperform other areas.
However, the body, which represents 104,000 business members with more than five million employees, warned UK growth is still too weak.
“The upward revision in our growth forecasts is encouraging,” said BCC director general John Longworth.
“Unfortunately, this does not change the fact that economic growth is still too weak and the pace of recovery will remain unduly slow for a while yet.”
It also called on Chancellor George Osborne to use the upcoming spending review to “help create the right conditions to boost enterprise, so that businesses can invest, export, create jobs and drive the recovery”.
