Wednesday March 12, 12:57 PM
UK BUDGET Darling lowers growth forecasts again
LONDON (Thomson Financial) - Chancellor of the Exchequer Alistair Darling today sought to prepare the country for tough economic times ahead by lowering the expected rate of GDP growth for the second time since October last year.
In his maiden budget speech here today, Darling acknowledged what private economists have been saying all along -- that the scarcity of credit in the wholesale money markets will dent the overall economy by more than previously thought.
Darling today slashed the GDP growth forecast for 2008 to 1.75-2.25 from the 2.00-2.50 pct he had stated in the pre-budget report in October last year, which in turn had been revised down from 2.5-3.0 pct.
The downgrade brings the Treasury closer in line with the Bank of England, which last month forecast GDP growth will dip to 1.75 pct the year.
For 2009, Darling sees GDP at 2.25-2.75 pct from 2.5-3.0 pct previously and by 2010 to be at 2.50-3.00 pct.
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