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- Britain’s government cuts growth and inflation forecasts
Britain’s government cuts growth and inflation forecasts
Britain's Chancellor George Osborne presented the budget 2016 on Wednesday. Growth and inflation forecasts were lowered. According to the U.K. Office for Budget Responsibility (OBR), the U.K. economy is expected to expand 2.0% in 2016, down from the previous forecast of 2.4%, and 2.2% in 2017, down from the previous forecast of 2.5%.
Inflation is expected to be 0.7% in 2016, down from the previous forecast of 1.0%, and 1.6% in 2017, down from the previous forecast of 1.8%.
Osborne said that the global economic outlook was weak, due to the slowdown in emerging economies and a weak growth in the developed economies.
The chancellor warned that Britain's exit from the European Union ('Brexit') would have a negative impact on the economy.
"Brexit could have negative implications for activity via business and consumer confidence and might result in greater volatility in financial and other asset markets," Osborne said.
The government will miss its public debt target. Debt forecasts as a share of GDP were upgraded.
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