OBR cuts UK growth forecast for 2012

The OBR revised down the growth forecasts for the UK economy it made in March from 0.8% to -0.1% for 2012, from 2% to 1.2% for 2013, and from 2.7% to 2% for 2014. It expects to see growth of 2.3% in 2015 and 2.8% in 2016. The OBR said over-optimism on the strength of net trade was to blame for the downgrades. It added the economic contraction in 2008-2009 was much deeper than it had originally thought. A 6.3% contraction in GDP was "the largest shock to the economy since World War II," Chancellor George Osborne said, and this continues to weigh on the productivity of the UK economy...