The British finance minister has slashed the country’s economic growth forecast, saying it is expected to grow more slowly than previously thought.
In delivering his annual budget on Wednesday, Chancellor of the Exchequer Philip Hammond said the Office for Budget Responsibility (OBR) expects the UK economy to grow by only 1.5 percent this year from the previous two-percent forecast in March.
Hammond acknowledged that Britain’s planned exit from the European Union is already inflicting an economic cost.
Britain’s GDP will expand 1.5 percent this year, by 1.4 percent in 2018, 1.3 percent in both 2019 and 2020 and 1.5 percent in 2021, Hammond revealed in a raft of forecast downgrades.
The predictions from the Office for Budget Responsibility (OBR) fiscal watchdog contrasted with prior growth guidance of 2.0 percent, 1.6 percent, 1.7 percent, 1.9 percent and 2.0 percent respectively.
“After taking account of all decisions since the spring…