In today’s Spring Budget Chancellor Philip Hammond announced the forecast for UK GDP in 2017 has increased to 2 per cent, revised up from the 1.4 per cent figure forecast in November’s Autumn Statement.
However, this is still lower than the 2.2 per cent forecast by the Office for Budget Responsibility announced in last year’s March Budget.
The growth forecasts for 2018, 2019 and 2020 have been cut to 1.6 per cent, 1.7 per cent and 1.9 per cent respectively, having already been revised down in the Autumn Statement, while the outlook for GDP growth in 2021 remains the same at 2 per cent.
Hammond says the forecast for 2021 remains the same, but “the path by the way we get there has changed.”
Today marks the final Spring Budget and the first of two Budgets this year. In November Hammond announced a Spring Statement from 2018, stating it would no longer be a “major fiscal event” but rather a response to forecasts from the Office for Budget Responsibility.