View more on these topics

AS 2012: OBR cuts growth forecasts

Budget group shot 2012 480

The Office for Budget Responsibility has cut its 2012 UK growth forecasts from 0.8 per cent to a contraction of 0.1 per cent.

The OBR also cut its 2013 growth rates from 2 per cent to just 1.2 per cent while 2014 OBR growth predictions fall to 2 per cent from 2.7 per cent.

In 2015, the UK economy is expected to grow 2.3 per cent, compared to previous estimate of 3 per cent, in 2016 it will grow by 1.7 per cent, compared to previous estimate of 3 per cent.

Delivering his autumn statement, chancellor George Osborne said the OBR is clear that the growth forecasts have been cut because of reduced trade with the Eurozone.

He said: “The economy has performed less than expected. The OBR thought the Eurozone would have recovered but instead it has contracted.”

Osborne also extended austerity by another year into 2018, missing his target of eliminating the deficit by 2015 by three years. During last year’s autumn statement he announced two more years of cuts.

The OBR predicts the deficit will be 6.1 per cent in 2013/14, 5.2 per cent in 2014/15, 4.2 per cent in 2015/16, 2.6 per cent in 206/17 and 1.6 per cent in 2017/18.

Borrowing is also due to fall in every year for six years from £108bn in 2013/14, £99bn in 2014/15, £88bn in 2015/16, £73bn in 2016/17, £49bn in 2017/18 and £31bn in 2018/19.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com