Government cuts growth forecasts

Chancellor Alistair Darling has cut the government's growth forecast for next year. The governmen...

Chancellor Alistair Darling has cut the government's growth forecast for next year. The government expects the economy to grow by 2% to 2.5% in 2008, down from the 2.5% to 3.0% forecast made in the March Budget. The downgrade brings the government's forecast more in line with those of private economists who are forecasting growth, on average, of 2.2 percent next year.