Lower growth predictions for the UK over the next two years

The government's economic forecaster has warned that over the next two years, the UK economy will grow far more slowly than previously anticipated because inflation takes longer to decline.

The Office for Budget Responsibility (OBR) forecasted 2024 and 2025 economic growth rates of 0.7% and 1.4%, respectively.

That is less than the 1.8% and 2.5% predictions made in March.

The OBR also stated that, one year later than anticipated, the rate of price increases in the UK would not return to normal until 2025.

The outlook, which came out with the chancellor's Autumn Statement, did, however, imply that debt and borrowing by the government would be less than anticipated.

The government-independent spending watchdog releases two sets of economic forecasts annually to project future developments in government spending.

These are tentative and based on the best estimate of what is likely to occur.

(Sources: bbc.co.uk)