UK economic forecaster to downgrade medium-term growth outlook – Times By Reuters
Economy 17 minutes ago (Jan 25, 2023 07:30)
© Reuters. FILE PHOTO: People walk over the Millennium Bridge with the City of London financial district in the background, in London, Britain, January 13, 2023. REUTERS/Henry Nicholls/File Photo
LONDON (Reuters) – Britain’s official economic forecaster has told the government that it overestimated the prospects for medium-term growth and that it intends to revise down its outlook, the Times newspaper reported on Wednesday.
The newspaper said the downgrade would wipe out all of the government’s 9.2 billion pound ($11.34 billion) headroom in the public finances and limit the scope for manoeuvre of finance minister Jeremy Hunt as he draws up a spring budget to be announced in March.
The Office for Budget Responsibility said in November that it expected the economy to shrink by 1.4% this year before returning to 1.3% growth in 2024, 2.6% in 2025 and 2.7% in 2026.
The Times said the OBR intended to reduce its forecasts by between 0.2% and 0.5%, without giving more details. Britain’s economy is yet to return to its pre-pandemic size, held back by inflation above 10% and a tight labour market.
The Times said the OBR also now thought any recession this year would be shorter and shallower than expected.
No one at the Treasury or OBR was immediately available to comment.
($1 = 0.8115 pounds)
UK economic forecaster to downgrade medium-term growth outlook – Times
© 2007-2023 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.