The burgeoning U.K. economic recovery is expected to lead to an official hike in economic forecasts this week, but Chancellor of the Exchequer George Osborne is unlikely to ease much on austerity.
The Chancellor’s autumn statement, due Thursday, will be accompanied by revised forecasts from the Office for Budget Responsibility (OBR), economists believe. Since he delivered his last Budget in March, economic data on measures including employment and manufacturing have been better than expected – as Goldman Sachs economists said recently, the U.K. is “one of the most notable economic surprise stories” of 2013. In March, the OBR forecast growth of 0.6 percent for 2013.
“The economy has moved from a state of despair to repair,” HSBC economists put it, in a research note where they predicted 2013 gross domestic product growth would hit 1.4 percent.
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