Britain hikes economic growth forecasts in budget update

5th December 2013, Comments 0 comments

Britain ramped up its economic growth forecasts on Thursday as the recovery gathers pace, finance minister George Osborne said in a key budget update.

Gross domestic product (GDP) was expected to grow by 1.4 percent in 2013 and by 2.4 percent in 2014, Osborne revealed in his autumn statement.

That compared with prior forecasts, given in March, for expansion of 0.6 percent and 1.8 percent respectively.

"Britain's economic plan is working but the job is not done. We need to secure the economic recovery for the long term," Chancellor of the Exchequer Osborne told lawmakers, citing the revised forecasts issued by the Office for Budget Responsibility watchdog.

He added: "We seek a responsible recovery, one where we don't squander the gains that we have made.

"We need a government that lives within its means in a country that pays its way within the world."

Osborne added that the Conservative-Liberal Democrat government would borrow £111 billion ($182 billion, 134 billion euros) in the current 2013/2014 financial year, which runs from April to March.

That was less that the previous £120-billion borrowing target, which is a measure of the public deficit.

© 2013 AFP

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