UK growth forecasts downgraded for next two years
The Office for Budget Responsibility (OBR) has said the UK economy will grow much more slowly than previously thought over the next two years as inflation takes longer to come down.
They said the economy would grow by 0.7% in 2024 and 1.4% in 2025.
It’s down from a forecast in March which suggested 1.8% and 2.5%.
The OBR says the rate of UK price rises would not return to normal until 2025, a year later than expected.
But the outlook suggests that borrowing and debt would both be lower than previously forecast.
The OBR are based on what they think will happen are are subject to change.