The Office for Budget Responsibility (OBR) of The United Kingdom, gives independent analysis of the UK's finances, as an executive non-departmental agency, sponsored by Treasury. United Kingdom Chancellor Hunt signaled that OBR forecasts show 2025 GDP growth of 1.9% (November forecast 1.4%). Here are some OBR and Hunt comments from the OBR report about UK economy:
- Market participants now expect a sharper fall in interest rates than they did in the Autumn
- Latest data from UK signal that the post pandemic rise in economic inactivity is likely to prove more persistent than previously expected
- Recovery is largely driven by a pick-up in household consumption growth to around 2% from 20205 to 2028
- Read GDP per person is forecast through at 1.25% below its pre-pandemic peak in the first half of 2024
- Forecast of the GDP level in five years is virtually unchanged versus the Autumn one, but the GDP per person is expected to be slightly lower
- Medium term economic outlook remains challenging, ant the long term ambition is tot keep cutting national insurance
- The average earner in the UK is to have the lowest effective personal tax rate since 1975
- OBR forecasts that national insurance cuts will bring and extra 200,000 people, into the workforce
- 27 million British employees will get an average tax cut of 900 British pounds a year
Source: xStation5
