UK growth forecast lowered

The new, independent Office for Budget Responsibility (OBR) believes that UK growth will be lower than previously forecast by the last Labour government. It projects that UK GDP growth will be 1.3% this year, and 2.6% next year. This compares with the previous government’s forecast for 2010 of 3.25%.  The OBR also forecasts growth of 2.8% in both 2012 and … Continue reading

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Pull the other leg, Mr Chancellor

Yesterday saw the arrival of the Budget we had all been waiting for. How was Alistair Darling, the chancellor, going to deal with an economy which is in severe recession and contend with government finances which have been so severely overstretched?   There was a bit of tinkering here and there with slight increases in taxes on alcohol, tobacco and … Continue reading

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Likely economic impact of Obama’s fiscal stimulus

On Monday of this week the Congressional Budget Office (CBO) responded to a request from the Senate to break down the anticipated effects of the fiscal stimulus of 17 February, which was incorporated into the American Recovery and Reinvestment Act of 2009 (ARRA).   Although the CBO made their forecasts based on the majority view of a number of economists, … Continue reading

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