'It is not the 70s': OBR defends optimistic growth rates

GDP contracts by 1.4% in 2023 but inflation drops sharply over the year

clock • 3 min read

The Office for Budget Responsibility (OBR) has defended its more optimistic growth forecasts versus those of the Bank of England, telling MPs they are in line with energy market expectations.

OBR chair Richard Hughes told the Treasury Committee the projections are linked to inflation forecasts, which rely heavily on a relatively speedy fall in the price of energy. He said: "Energy shocks of the 70s and 80s lasted much longer than markets are predicting this shock will last." Market expectations imply there is a "really substantial fall in energy prices", especially gas prices, starting early in 2023 and "accelerating really sharply" through 2024 and 2025, another member of the OBR David Miles, told the committee. OBR confirms UK recession and weakest public finances 'fo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read