Autumn Statement 23: UK growth forecasts face significant downgrade
The OBR forecast saw an decline from its March numbers. Copyright HM Treasury
In the Autumn Statement today (22 November), Hunt outlined the Office for Budget Responsibility's forecasts for the UK economy, which revealed depressed growth figures over the next five years.
GDP growth is now expected to average 0.6% throughout this year, a rise compared to 0.5% in the Bank of England's latest forecasts from earlier this month, and the predicted 0.2% fall in the OBR's forecast in March.
The economy is then predicted to grow by 0.7% in 2024, 1.4% in 2025, 1.9% in 2026, 2% in 2027 and 1.7% in 2028, a significant drop from the OBR's forecasts earlier this year, which predicted growth at 1.8% in 2024, 2.5% in 2025, 2.1% in 2026 and 1.9% in 2027.
However, they are above the Bank of England's forecasts from earlier this month, which predicted 0.1% growth in 2024, 0.2% in 2025 and 0.8% in 2025.
Meanwhile, Hunt said that inflation is now set to average 2.8% next year, before falling to the 2% target in 2025, below the BoE's forecast of 3.6% but well above the 0.9% predicted by the OBR in March.
Underlying public sector net debt is also set to decline, Hunt said, falling to 91.6% in 2023/24, rather than 92.4% as predicted in March.
This will then rise to 92.7% in 24/25, 93.2% in 25/26 and 92.8% in 26/27, down from 93.7% in 24/25, 94.6% in 25/26 and 94.8% in 26/27.
This will maintain the UK's place as the second lowest government debt within the G7, the chancellor said.
He added that the OBR had forecast that borrowing will be on average £0.7bn lower this year and next.
Autumn Statement 23: Chancellor Hunt promises 110 measures to grow UK economy
Read more on investmentweek.co.uk
