UK spring statement: GDP growth revised up to 1.5%

Economy 3/13/2018, 2:10 PM
UK spring statement: GDP growth revised up to 1.5%

United Kingdom's Chancellor of the Exchequer Philip Hammond said on Tuesday that the Office for Budget Responsibility (OBR) revised GDP growth forecast up from 1.4% to 1.5% for this year. Delivering the first spring statement on the economic and fiscal outlook, he declared inflation, currently at above-target 3%, is expected to fall back to a target figure of 2% over the next 12 months. Borrowing currently represents 2.2% of GDP and is forecast to fall to 1.8% in 2018-2019, decreasing further to 0.9% in 2022-2023. Hammond said UK's debt will peak at 85.6% this year, then fall to 77.9% in 2022-23.

The chancellor announced the Treasury will today release a spending strategy for £1.5bn set aside for Brexit planning. He also promised support for small businesses, infrastructure projects, and environmental issues, as well as an investment program of £44 billion to raise housing supply to 300,000 a year by the mid-2020s.

Breaking the News / DJ