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Budget 2014: OBR raises UK growth forecast

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  • 19/03/2014
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Budget 2014: OBR raises UK growth forecast
The Office for Budget Responsibility (OBR) has raised its forecast for UK economic growth this year as the recovery continues to gather pace.

The OBR is forecasting growth of 2.7% this year, an increase on the 2.4% expansion it predicted in December. This is the largest upwards revision between Budgets for 30 years, the Chancellor said,

Growth for 2015 is expected to come in at 2.3%, up from the 2.2% previously forecast, and 2.6% for 2016-2017, before returning to its long-term trend level of 2.5% in 2018.

“We are putting Britain right, but the job is far from done,” George Osborne said as he delivered what he called a “Budget for building a resilient economy”.

He added the UK economy will be £16bn larger than was predicted at the time of the Autumn Statement four months ago.

The economy posted growth of 1.9% for 2013 as a whole, the fastest rate of growth since 2007. Today unemployment fell by 63,000 to 2.33m in the three months to January, with the jobless rate at 7.2%, hinting at an improving economy.

In last year’s Budget, the OBR halved its growth forecast for the UK economy for 2013 to 0.6%, below the consensus expectation of 0.9%.

In December, the OBR also revised down its forecast for growth in 2014 to 1.8%.

For full coverage of the Budget 2014, click HERE.

 

 

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