The UK economy will not enter a technical recession in 2023, British Finance Minister Jeremy Hunt announced in the government’s spring budget.
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LONDON – British Finance Minister Jeremy Hunt said on Wednesday that Britain’s economy will not enter a technical recession in 2023, as previously forecast.
Hunt said the updated outlook was based on new forecasts from the independent Office for Budget Responsibility.
A technical recession occurs when a country sees contraction in its real GDP for two consecutive quarters.
The Chancellor of the Exchequer said the UK economy is “proving the doubters wrong” after earlier predictions, including from the Bank of England, that the country is facing the longest recession ever.
In its revised outlook, the OBR also said it expects inflation to fall to 2.9% by the end of 2023, meaning the pace of price growth will be slower than anticipated and down from the high of 11.1% recorded in October. Will sit
The inflation rate is currently at 10.1%, although the target level is 2%.
“They anticipate we will deliver on the prime minister’s priorities of halving inflation, reducing debt and getting the economy going,” Hunt said.
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