Economists' forecasts muted as Osborne reassures on UK growth

Chancellor George Osborne said he believes the UK economy is "roughly in the right place" ahead of the publication of Q1 GDP figures this morning, as economists predict growth will come in below forecasts.

Osborne briefed the Cabinet minutes after being given a preview of official figures for gross domestic product in the first quarter of 2011, the FT reports. The UK economy contracted 0.5% in the fourth quarter of last year, a dip the Office for National Statistics blamed on the snow. Osborne had hoped for a healthy rebound in the first quarter and the Budget pencilled in expansion of 0.8%. Economists are expecting in the region of 0.5% growth for the quarter. Stuart Thomson, chief economist at Ignis, said he is predicting below-trend economic growth as the UK struggles to recovery ...