Osborne: Economy to grow by 0.9 percent this year
Growth forecast revised downward to 0.9 percent this year and 0.7 percent in 2012
Chancellor George Osborne said on Tuesday that growth forecasts for the UK economy had been revised downward to 0.9 percent this year and 0.7 percent next year – lower than most predictions of 1 percent.
Osborne said in his autumn statement that the figures from the Office for Budget Responsibility – an independent body set up last year by the chancellor – did not predict a recession for the UK but he said that economic headwinds from the euro zone may push the UK into another recession.
"If the rest of Europe heads into recession it may prove harder to avoid one in the UK," the chancellor told parliament.
He said the OBR analysis blamed the deterioration in economic condition across Britain on rising energy prices and global commodity prices.
Osborne added that new evidence from the OBR also showed that "an even bigger component" in worsening economic conditions can be blamed on the "unsustainable boom" and the "bust was greater than we thought".
Osborne said the coalition government was one "committed to take Britain safely through the storm."
"Leadership for tough times – that’s what we offer," he said concluding his address to parliament.
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