Philip Hammond announced the latest forecasts from the Office for Budget Responsibility (OBR) during today’s Autumn Statement.
Growth forecasts are as follows:
2016 – 2.3%, up from forecast in March.
2017 – 1.4%, lower than expected.
2018 – 1.7%
2019 – 2.1%
2020 – 2.1%
2021 – 2.0%
The OBR predicts total growth to 2021 will be 2.4% lower than it would have been without Brexit.
Dennis de Jong, managing director at UFX.com, said: “We expected Philip Hammond to be cautious in his first speech as chancellor following Brexit and that is exactly how it has turned out.
“Although trying to paint a brighter picture by comparing the UK with Germany and other European countries, the chancellor has slashed the already meagre growth forecast for 2017.
“Inflation continues to rise due to the weak pound and consumers are holding back on spending because of the high levels of uncertainty.
“With so many bumps in the road expected to come in the next two years, it appears balancing the books is firmly on the backburner.”