UK Autumn Statement: GDP forecasts up
UK Chancellor George Osborne delivered his half-yearly budget statement (“Autumn Statement”) to parliament on Thursday.
Osborne said that the UK economy is recovering faster than expected. “Britain's economic plan is working, but the job is not done,” he said. Osborn underlined that youth employment and business taxes are too high, while growth and exports – too low.
The Office of Budget Responsibility (OBR) has revised up its forecasts for UK gross domestic product (GDP), to 1.4% for 2013, and 2.4% for 2014. In its previous Economic and Fiscal Outlook, published in March 2013, the OBR published forecasts of 0.6% for 2013, and to 1.8% for 2014. Euro zone’s instability still is the main risk to growth.
As for the labor market, OBR expects to see unemployment rate at 7% in 2015 and 5.6% by 2018.