Budget: The three risks still facing the UK economy

Although the economy will escape recession, the extra bank holiday in June and the Olympic Games over the summer will hit quarterly growth, the statement said. The Office for Budget Responsibility predicts the economy will expand by 0.8% this year, an increase from the previous forecast of 0.7%, and in line with the private sector consensus. The figure is still well below the Bank of England's November forecast of 1.5% GDP growth for the year. However, the OBR revised down its forecast for 2013 from 2.1% to 2%. Forecasts for 2014-2016 remain in line with previous estimates. The ...