Summary
The UK's economic growth forecast for this year has been reduced, according to the Office for Budget Responsibility (OBR). However, growth estimates for the following years have been increased. The forecasts were made before recent Middle East conflicts that have increased oil and gas prices.
Key Facts
- The UK economic growth forecast for 2026 is now 1.1%, down from the previous 1.4%.
- Growth estimates for 2027 and 2028 have been increased to 1.6% for both years.
- Chancellor Rachel Reeves announced the new figures during her Spring Statement.
- The OBR expects inflation to decrease faster than previously thought.
- The forecasts were made before the recent Middle East conflict, which has caused a rise in oil and gas prices.
- The Office for Budget Responsibility (OBR) provides economic predictions based on government tax and spending policies.
