PBR 2007: Official growth forecasts trimmed, but chancellor still optimistic

Share this content

Insistence that the economy will grow by 3% this year, and faith in the budgets later-year forecasts, soften the blow of conceding that growth could drop below the 2.5% trend in 2008.

The economys growth rate stayed at 3% y-o-y in H1, in line with recent trends and Treasury forecasts. Although most forecasters expect H2 growth to be slower, the Chancellor has kept his full-year projection at 3%. This enables Darling to repeat his predecessors much-loved refrain that the UK is outgrowing most other large EU economies, and even set to move ahead of the US for full-year 2007. Consumer spending growth has already slowed, to 2.5% this year and around 2% in 2008-9 on independent forecasts, as a result of higher interest rates and slow real wage growth. But business investment has picked up to avo...

Please Login or Register to read the full article

The full article is available to registered AccountingWEB.co.uk members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.


Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.