UK cuts growth forecasts in first budget plan since Brexit vote

Source : REUTERS
Last Updated: Wed, Nov 23, 2016 18:41 hrs

LONDON (Reuters) - Britain has cut its official forecasts for economic growth for the next two years, Finance Minister Philip Hammond said on Wednesday as he delivered the country's first budget statement since voters decided to leave the European Union.

The Office for Budget Responsibility forecast gross domestic product would grow by 1.4 percent in 2017, down from an estimate of 2.2 percent made in March, before June's Brexit vote.

Hammond also told parliament the OBR now saw growth in 2018 at 1.7 percent compared with March's forecast of 2.1 percent.

Growth forecasts in 2019 and 2020 remained unchanged from the March forecasts of 2.1 percent for both years.

The March forecasts were based on the assumption that Britain would vote to stay in the EU.

(Writing by William Schomberg, editing by Andy Bruce)



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