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Britain’s Chancellor of the Exchequer Rishi Sunak reacts as he leaves Downing Street, in London July 8, 2020. — Reuters pic
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LONDON, March 23 — Britain’s economy will grow far slower than expected this year owing to the Ukraine war and soaring global inflation, finance minister Rishi Sunak said today in a government budget update.
The UK economy was set to grow 3.8 per cent this year, down from an official estimate of six per cent made in October, Chancellor of the Exchequer Sunak told parliament.
He said that the Office for Budget Responsibility — the government’s official economic forecaster — “has not accounted for the full impacts of the war in Ukraine and we should be prepared for the economy and public finances to worsen, potentially significantly”.
“Their initial view, combined with high global inflation and continuing supply chain pressures means” the UK economy is forecast to grow 3.8 per cent this year.
Gross domestic product was estimated to expand a further 1.8 per cent next year, down from an official prediction of 2.1 per cent. — AFP