Spring Statement 2018: OBR revises up GDP; Inflation to fall to 2%

First Spring Statement

clock • 1 min read

The Office for Budget Responsibility (OBR) has revised up the UK's GDP growth forecast for 2018 in today's inaugural Spring Statement, while forecasting inflation will fall to 2% by the end of 2018.

In Chancellor Philip Hammond's first Spring Statement, replacing the usual Budget which will now be held in the autumn, it was confirmed GDP growth for 2017 was 1.7% on the back of stronger-than-expected productivity growth, beating the 1.5% forecast in the Autumn budget.  In November, the GDP growth forecast for the next five years, up to and including 2022, was 1.4%, 1.3%, 1.3%, 1.5% and 1.6% respectively. These have been revised to 1.5% in 2018, 1.3% in 2019 and 2020, 1.4% in 2021 and 1.5% in 2022.  GDP is expected to grow faster in 2018, Hammond said, adding "we did it in 2017 ...

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