economists fear £45bn will be added to deficit by 2017
Last Updated : GMT 11:37:27
Arab Today, arab today
Arab Today, arab today

Economists fear £45bn will be added to deficit by 2017

Arab Today, arab today

Arab Today, arab today Economists fear £45bn will be added to deficit by 2017

London - Kuna

The UK\'s debt burden is likely to swell by an extra £45bn over the next five years as the spluttering economy fails to grow as fast as expected, experts warned today. Chancellor George Osborne is set to undershoot the Office for Budget Responsibility\'s borrowing target of £127bn for the current year, due to a tighter than expected clampdown on spending and higher public-sector job losses. But the good news will probably end there for the Chancellor, as growth fails to match the optimistic 3 per cent a year pencilled in by the independent watchdog for 2015 and 2016. David Page, the chief UK economist at Lloyds Bank Corporate Markets, warned that a banking system clawing its way back to health and facing regulator demands to hold more capital would act as a handbrake on the economy. \"We remain sceptical of the longer-term forecasts that envisage economic activity accelerating in excess of 3 per cent,\" he said. \"Structural changes to the banking system could see credit conditions remain tight, reducing the likely trend level of output in the UK economy. \"Such a shortfall in growth would leave the headline Budget deficit higher than projected – our own estimates suggest by around £45bn over the coming five years.\" The OBR is likely to leave its near-term forecasts unchanged after sharply slashing its forecasts for 2012 to just 0.7 per cent last November. But HSBC\'s chief UK economist, Simon Wells, also accused the OBR of over-optimism which could put borrowing forecasts in later years under pressure, because its assessment of the UK\'s potential \"trend\" growth is too high. This judgement is crucial because if the UK has lower long-term growth prospects Mr Osborne will have to cut the deficit with deeper spending cuts or tax rises rather than relying on growth to get the economy out of its current malaise. Mr Wells warned: \"The OBR assumes trend productivity growth of 2.2 per cent but this seems on the high side. We think growth in the region of 1.5 to 2 per cent is more plausible.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

economists fear £45bn will be added to deficit by 2017 economists fear £45bn will be added to deficit by 2017

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

economists fear £45bn will be added to deficit by 2017 economists fear £45bn will be added to deficit by 2017

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Saudis clear passenger flights

GMT 08:38 2017 Saturday ,25 November

Saudis clear passenger flights
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Germany's SPD says ready for talks

GMT 11:28 2017 Saturday ,25 November

Germany's SPD says ready for talks
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today 'Trash islands' off Central America indicate

GMT 20:19 2017 Friday ,24 November

'Trash islands' off Central America indicate
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Heidy underlines works like “Seventh Neighbor”

GMT 13:59 2017 Thursday ,23 November

Heidy underlines works like “Seventh Neighbor”
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 07:53 2017 Friday ,24 November

To Debate Ethics of Euthanasia

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday