Budget 2017: OBR significantly upgrades UK growth forecast for this year

GDP growth to hit 2% in 2017

The Office for Budget Responsibility (OBR) has significantly upgraded UK growth expectations to 2% for 2017, after the economy grew by 1.8% in 2016.

In the Spring Budget 2017, Chancellor Philip Hammond revealed the OBR is now predicting growth to reach 2% in 2017, much higher than its November forecast of 1.4%. However, the OBR's stronger projection for this year has been offset by expectations of lower GDP growth for the two following years. It is expected to fall to 1.6% in 2018, before rising slightly to 1.7% in 2019, as Brexit negotiations take their toll. Growth is expected to reach 2% once again in 2021. Hammond (pictured) said: "The UK economy continues to astound us with robust growth and a strong labour market. Last year ...