Growth forecasts to be cut

first_img BRITAIN’S projected rate of economic recovery will be downgraded by the government’s fiscal watchdog this week, analysts expect.In November the Office for Budget Responsibility (OBR) predicted 2.1 per cent growth for 2011 – considerably above most recent independent forecasts.“We suspect that the OBR will lower its shorter-term GDP projections,” commented Investec’s Philip Shaw.The Organisation for Economic Co-operation and Development (OECD) last week revised down its estimate of British growth, from 1.7 per cent to 1.5 per cent for this year.However, the OECD insisted that the chancellor is right to continue with immediate spending cuts – the policy dubbed “Plan A”. And today another group of leading economists is expected to urge further austerity.Chancellor George Osborne must resist the temptation to grant any “give-aways” in this week’s budget, the Ernst and Young Item Club will say.The deficit for the whole fiscal year will come in at £140.2bn, Item expects – around £8bn below the Office for Budget Responsibility’s (OBR) official forecast.However, the slowdown in growth risks the “very small margin for error” in achieving the government’s fiscal mandate over the whole course of parliament, it believes.“It is still very early days on the long and challenging road to fiscal balance,” according to Item’s chief economist Andrew Goodwin.The government’s net borrowing up to this month is released tomorrow, one day ahead of the chancellor’s budget and the OBR’s new forecasts.Total government debt will peak at 69.1 per cent of British GDP, according to the latest OBR projections.Item is also expected to call today for the chancellor to commit to remove the 50p tax rate once public finances have sufficiently improved. whatsapp KCS-content whatsapp Show Comments ▼ Sharecenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Herald More From Our Partners Biden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Growth forecasts to be cut Sunday 20 March 2011 11:42 pm Tags: NULLlast_img

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