Budget 2013: OBR halves growth forecast
In December the OBR had predicted growth of 1.2% but in today’s Budget the Chancellor announced that this figure had been halved.
The OBR also revised down its forecast for growth in 2014 predicting growth of 1.8% down from 2% forecast in December.
Predictions for 2015 to 2017 have been left unchanged.
However in its report the OBR said it does not expect the economy to contract in the first three months of 2013 which would have put the UK into recession on the generally accepted definition of two quarters of negative growth.
In his Budget statement the Chancellor partially attributed the ongoing economic difficulties to problems in the eurozone.
The Chancellor said: “Another bout of storms in the eurozone would hit Britain’s economic fortunes hard. We are still very exposed to what happens on the continent.
He added: “It is taking longer than anyone had hoped but we must hold to the right track.”