UK growth forecasts downgraded for 2024 and 2025
What's the story
The UK's economic growth is expected to slow down over the next two years, according to the UK's Office for Budget Responsibility (OBR).
The independent watchdog now predicts a growth of 0.7% in 2024 and 1.4% in 2025, a decrease from its previous forecast of 1.8% and 2.5%.
This change is due to inflation taking longer to decrease than initially anticipated.
Details
Inflation rate to normalize later than expected
In addition, the OBR revealed that the UK's inflation rate won't return to normal until 2025, a year later than previously expected.
This information was released alongside the Chancellor's Autumn Statement, which outlines the government's financial plans and projections.
The OBR is responsible for publishing two sets of economic forecasts each year, which help predict government finances.
What Next?
Government borrowing and debt lower than forecast
Despite the lowered growth predictions, the OBR's outlook indicates that government borrowing and debt will be lower than previously estimated.
These forecasts are based on the OBR's best guess about future economic developments and can change over time.
The organization plays a vital role in providing accurate and unbiased information to support government financial decisions and policy-making.