In today’s Spring Statement Chancellor Philip Hammond announced the forecast for UK GDP in 2018 revising it upwards compared to previous data.
Estimates from the Office for Budget Responsibility say the UK economy has grown 1.7 per cent in 2017, compared to the previous forecast of 1.5 per cent announced in the Autumn Budget in November.
The UK GDP is set to grow 1.5 per cent between 2018 and 2019, up from 1.4 per cent from previous estimates.
However, growth for 2019 and 2020 will remain unchanged from previous estimates of 1.3 per cent and will rise to 1.5 per cent in 2021 and 2022.
Hammond says the OBR forecast paints a picture of “more jobs, rising real wages, declining inflation, falling deficit, and shrinking debt”.
The OBR also revised down debt and borrowing costs.
Borrowing costs for this year will be £45.2bn, which is £4.7bn lower compared to what was announced in the Autumn Budget. The new figures represent £108bn of reduced borrowing costs than in 2010.
Debt will peak at 85.6 per cent this year, and then fall to 77.9 per cent in 2022 and 2023.