Presenting the Budget 2013, Chancellor George Osborne said the OBR has halved its forecast from the 1.2% it previously expected.
The figure is much lower than consensus, which was for a 0.9% expansion.
The OBR also revised down its forecast for growth in 2014, after a poor year for the economy in 2012 when it just managed to post slight positive growth. The body expects to see 1.8% growth for 2014, down from 2% forecast in December.
This compares to a consensus forecast of 1.6% growth. Osborne also said the economy is likely to avoid a second quarter of negative growth.
Giving his speech for a Budget designed to “help those who want to work hard and get on”, Osborne said the path to recovery is slower than the government had anticipated.
“It is taking longer than anyone had hoped but we must hold to the right track,” the Chancellor said.
