Official growth forecasts are set to be revised up by the Office for Budget Responsibility tomorrow as the independent forecaster’s projections come into line with more optimistic projections from the private sector.
The Financial Times reports the independent forecaster is expected to revise its 0.7 per cent growth forecast for 2012 up to 0.8 per cent. The OBR’s new set of fiscal forecasts will be published as Osborne delivers his Budget speech.
When the OBR set out its last growth estimates as part of the Autumn statement in November, the European sovereign debt crisis was at its height. The forecaster, led by Robert Chote (pictured) said the outcome of the crisis would be crucial to future projections.
Data released by the independent forecaster alongside the Autumn Statement predicted the economy will grow by 0.9 per cent in 2011, 0.7 per cent in 2012 and 2.1 per cent in 2013. It said the economy will grow by 2.7 per cent in 2014, 3 per cent in 2015 and 3 per cent in 2016.
The OBR’s projections at last March’s Budget were 1.7 per cent for 2011, 2.5 per cent for 2012 and 2.9 per cent for 2013. In November 2010 it expected 2.3 per cent growth for this year and 2.8 per cent for 2012.