Spring Budget 23: OBR forecasts UK will dodge recession this year

OBR also forecasts inflation set to fall to 2.9%

Elliot Gulliver-Needham
clock • 1 min read

The Office for Budget Responsibility has forecast that the UK will not enter a technical recession this year, Chancellor Jeremy Hunt said today (15 March).

In the Spring Budget, Hunt said the OBR had predicted inflation will fall to 2.9% at the end of this year, down from 10.7% in the last quarter of 2022. Previously in the Autumn Statement in November, the OBR had predicted inflation would average 7.4% throughout the year. It also predicted a 1.5% contraction for UK GDP in 2023, but it has now forecast GDP will contract by just 0.2% throughout the year. UK GDP is then set to rise by 1.8% in 2024, 2.5% in 2025, 2.1% in 2026 and 1.9% in 2027. A technical recession is defined as two continuous quarters of declining GDP, which Hunt sa...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read