OBR downgrades UK growth as expected
by Kay Murchie
The newly-established Office of Budget Responsibility (OBR) has today slashed the UK’s growth prospects, as expected.
According to the OBR, the UK economy will expand by 2.6% in 2011 - lower than ex-Chancellor Alistair Darling’s 2011 forecast of 3% – 3.5%.
The OBR, which is led by former Treasury official Sir Alan Budd, predicts growth to be just 1.3% in 2010, before rising to 2.6% in 2011 and 2.8% in 2012 and 2013.
Today’s growth estimates are the first from the independent body, which was set up by the coalition Government to assess the state of public finances.
In the meantime, the OBR expects inflation to stay above 3% in the short-term before falling below the 2% target next year.
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Tags: downgrade, growth, inflation, OBR, Office of Budget Responsibility, prospects