UK Chancellor Says Economy Growing Faster than Expected

Britain’s Chancellor George Osborne revealed that the growth forecasts for the U.K.’s economy had been upped for this year and next, as he presented his budget to parliament on Wednesday.

The independent Office for Budget Responsibility (OBR) said the economy looked set to grow by 2.7 percent in 2014 – an increase from its December forecast of 2.4 percent – and by 2.3 percent in 2015, up from 2.2 percent. For 2016, the growth forecast remained at 2.6 percent.

But despite these upgrades, Osborne said he was sticking to an austerity agenda.

“I have never shied away from telling the British people about the difficult decisions we face – and just because things are getting better, I don’t intend to do so today,” the chancellor said in his annual speech.

Osborne added that the OBR had revised down the U.K.’s deficit for every year of its forecast. In 2013/2014, the country is now expected to have a budget deficit of 6.6 percent of gross domestic product (GDP), down from 6.8 percent, with that percentage decreasing until it hits 2.4 percent in in 2016/2017 – down from 2.7 percent.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza