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Spring statement 2019: OBR cuts growth forecast

13th March 2019

The Office for Budget Responsibility (OBR) has revised down its growth forecast for 2019, but has predicted lower borrowing.

According to the forecasts announced on 13 March in Spring Statement 2019, GDP is set to grow by 1.2%, down from October's forecast of 1.6%.

It's then expected to rise to 1.4% in 2020, and to 1.6% during each of the three following years.

Year  GDP growth forecast in October 2018 (%) GDP growth forecast in March 2019 (%) 
2019 1.6  1.2 
2020 1.4  1.4 
2021  1.4  1.6 
2022 1.5  1.6 
2023  1.6  1.6 

The OBR also reduced its forecast for public sector net borrowing in 2018/19 to £22.8 billion - £2.7 billion lower than the figure forecast in October.

It is expected to fall to £13.5bn by 2023/24, which Chancellor Philip Hammond said will be "its lowest level in 22 years".

However, the OBR's forecasts are based on the UK making "an orderly departure from the EU", and could change depending on the outcome of Brexit negotiations.

Talk to us for more information on the Spring Statement.