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 and we should make it our business to do it again".
However, the revisions indicate growth will slow in 2021 and 2022.
The OBR also forecast that CPI inflation, which stands at 3%, would fall back to its 2% target by the end of 2018.
Borrowing for the 2017/18 fiscal year was revised down by £4.7bn to £45.2bn, Hammond said, adding "there is light at the end of the tunnel."
The new forecasts for net borrowing as a percntage of GDP are 1.8% for 2018/19, 1.6% for 2019/20, 1.3% for 2020/21, 1.1% for 2021/22 and 0.9% for 2022/23.
For 2018/19 there will be a small surplus in day-to-day spending with debt to peak at 85.6% this year before falling to 77.9% in 2022/23. The debt forecast is 1% lower than in November.
Looking at employment, Hammond said he expected to see 500,000 more people in work by 2022.
"We are building a Britain fit for the future and an economy that works for everyone," he added.
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds
Variable operating expenses