Business News
Britain slashes economic forecasts as "debt challenge" grows
Nov 29, 2011, 19:28 GMT
London - The British government Tuesday downgraded its forecasts for economic growth while admitting that the 'debt challenge' was more serious than expected.
George Osborne, the Chancellor of the Exchequer, said gross domestic product would would grow by 0.9 per cent in 2011 and by 0.7 per cent next year, compared with previous predictions of 1.7 per cent and 2.5 per cent respectively.
Osborne, in an update of the government's economic strategy, also conceded that the 'debt challenge is greater than we thought.'
Targets for cutting the structural deficit by 2015 had therefore been revised.
Osborne, quoting growth forecast figures from the independent Office for Budget Responsibility, said the experts had blamed the lower-than-expected growth on 'the sovereign debt crisis in the eurozone.'
Osborne announced a number of infrastructure projects and a credit easing programme to stimulate growth.
He would do 'whatever it takes to protect Britain from this debt storm while doing all we can to build the foundations of future growth.
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
