Comments from Hammond in Spring Statement
- OBR 2020 forecast at 1.4% (unchanged)
- OBR 2021 forecast at 1.6% vs 1.4% prior
- OBR 2022 forecast at 1.6% vs 1.5% prior
- OBR 2023 forecast at 1.6% (unchanged)
- 2018/19 deficit to GDP at 1.1% vs 1.2% prior
- Sees real wage growth in every year of forecast
- Has revised up wage growth to 3% or higher in every year
- Economy forecast to grow in each of next 5 years
- Economy itself is remarkably robust
- Last night's vote leaves cloud of uncertainty over economy
No one can forecast out 5 months let alone 5 years. The forecasts aren't overly optimistic with the consensus of economists at 1.4% this year, 1.5% in 2020 and 1.7% in 2021.
Hammond said a Brexit deal would contribute a fiscal boost. He said that once a deal is concluded they will carry out a three years pending review.