— 2011 GDP Downgraded to 1.7% vs 2.1% Seen In November – OBR
— 2012 GDP Forecast 2.5 vs 2.6% Seen In November – OBR
— 2013 GDP Forecast 2.9 Same As Seen In November – OBR
LONDON (MNI) – The UK’s Office for Budget Responsibility has
downgraded its official growth forecast for 2011 to 1.7%, down from the
2.1% forecast in November 2010, Chancellor of the Exchequer George
Osborne revealed as part of his first March budget.
The Chancellor said that the downgrade was due to a weaker-than-expected
Q4 2010 GDP outturn, high commodity prices and high inflation.
The downgrade brings the official forecast of growth for 2011
closer to consensus. The UK Treasury’s March comparison of independent
forecasters’ produced average forecast of 1.8% growth in 2011.
A downgrade to the growth forecast had been widely anticipated
following disappointing Q4 GDP figures which showed the UK economy
contracted 0.6% in the final quarter of 2010.
The forecasts are made by independent fiscal watchdog the Office
for Budget Responsibility, which took over the role of forecasting from
the government following last year’s general election.
–London newsroom: 4420 7862 7492; email: wwilkes@marketnews.com
[TOPICS: M$B$$$,MFB$$$,MABDS$,MT$$$$,MFBBU$]
