PBR: Darling lowers economic growth forecast

The impact of the turmoil in financial markets, a slower global economy and likely continued uncertainty will shave 0.5 percentage points off growth next year, he said. From 3pc this year, the revised forecasts indicate 2008 growth of 2-2.5pc, down from the 2.5-3pc forecast in March. The expectation for 2009 was unchanged at 2.5-3pc. Independent forecasters have similarly downgraded their forecasts and several are tipping growth to be sub-2pc next year. Amongst the most pessimistic are Lehman Brothers, whose forecast for 2008 growth has been revised by 0.6 percentage points, to 1.7pc. ...