UK hopes to avoid recession in 2023, confirms Chancellor of the Exchequer Jeremy Hunt

UK hopes to avoid recession in 2023, confirms Chancellor of the Exchequer Jeremy Hunt

Europe News Desk!!! Britain will avoid a technical recession this year and inflation will fall to 2.9 per cent by the end of 2023. This was stated by Chancellor of the Exchequer Jeremy Hunt. The financial watchdog Office for Budget Responsibility (OBR) estimates that due to changing international factors and the measures I have taken, the UK will no longer enter a technical recession this year, Hunt said during his spring Budget 2023 speech on Wednesday. Will do The chancellor unveiled a series of plans on Wednesday to prop up the struggling economy, including childcare reform, tax cuts for businesses and measures to ease the cost-of-living burden for households, Xinhua news agency reported. Are included.

Hunt said that despite continued global volatility, the OBR predicted that inflation in the UK would fall from 10.7 per cent in the last quarter of 2022 to 2.9 per cent by the end of this year. He said the government remained steadfast in its support to the central bank and took action to bring inflation back to the 2 percent target. High inflation is the root cause of the strikes we have seen in recent months, he said. We will continue to work hard to settle these disputes, but only in a way that does not lead to inflation. Despite the new forecast, analysts still expect a depressed economy.

While the OBR no longer forecast a recession this year, and 2024 growth was revised higher, growth in future years was revised higher and the economy is expected to be roughly the same size in 2027/28. As said by Paul Dales, an economist at Capital Economics consultancy. A monthly comparison of independent estimates published by the UK Treasury on Wednesday showed an average new forecast for the UK economy of 0.5 per cent contraction in 2023 and 0.8 per cent growth in 2024.



World News Desk!!!

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