Budget 2013: OBR halves UK growth forecast for 2013

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The UK economy will post growth of 0.6% this year, according to the Office for Budget Responsibility (OBR), a downward revision from its December forecast.

Presenting the Budget 2013, Chancellor George Osborne said the OBR has halved its forecast from the 1.2% it previously expected. The figure is much lower than consensus, which was for a 0.9% expansion. The OBR also revised down its forecast for growth in 2014, after a poor year for the economy in 2012 when it just managed to post slight positive growth. The body expects to see 1.8% growth for 2014, down from 2% forecast in December. This compares to a consensus forecast of 1.6% growth. Osborne also said the economy is likely to avoid a second quarter of negative growth.The forecast...

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