Economic recovery is notably stronger than predicted in June 2010 forecast
Summary
Official fiscal forecasters have revealed that the UK is recovering from the hard-hitting recession more strongly than originally predicted at the time of the Coalition Government’s first Budget.
'Economic and Fiscal Outlook' (Cm. 7979), the report from the Office for Budget Responsibility (OBR), found that the gross domestic product (GDP) growth was greater than expected in both the second and third quarters of 2010 and employment has risen to levels exceeding expectations forecast for the middle of 2012.
In general the world economy has also grown stronger, whilst consumer price index (CPI) inflation has remained slightly higher than expected in June and public finances have performed as forecast. The interest rates on UK debt are also lower than in June.
The OBR’s central forecast is that the economy will continue to recover from the recession, but more slowly than previous economic downturns over the last 40 years have done.
The purpose of the report is to set out the official economic and fiscal forecasts for the period to 2015-16, presenting preliminary observations on the long-run sustainability of UK public finances.
The Office for Budget Responsibility is an independent body, established, formed to provide objective and authoritative analysis of the UK's public finances.
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