‘Gloomy’ Economic Budget Forecast

Maybe I am just an eternal optimist or view things with a glass half full type approach but the negative stance and headlines about do frustrate me. Forecast Cut Sharply and Gloomy Outlook…really?

Key points below:

Growth forecasts for the UK economy have been cut sharply following changes to estimates of productivity and business investment.

The Office for Budget Responsibility (OBR) now expects the economy to grow by 1.5% this year, down from the estimate of 2% it made in March.

Growth, it says, will drop to 1.3% by 2020 and then rise to 1.5% in 2021.

The lower growth means that by 2021-22 government tax receipts will be £20bn lower than the OBR’s March forecast.

The OBR expects borrowing as a share of economic output will still fall, but not as fast as it predicted in March.

It forecasts that borrowing this year will be 2.4% of Gross Domestic Product (GDP), rather than its previous prediction of 2.9%.

By 2021-22, it says that percentage will be down to 1.3%. However, in March, it had expected borrowing to have fallen to 0.7% of GDP by then.

This can hardly be interpreted as disastrous. It is not what anyone wants to read and we all want good solid growth at a higher rate but let us not forget where the UK economy has been, global pressures, the global economy as a whole and of course the unsettling Brexit negotiations. The media seems to revel in negativity and doesn’t focus on where we have been and where we are and where we aim to be. I’m not suggesting we all go around every day with an inane smile on our faces and forget issues in our lives but surely a positive approach, with a positive mind breeds positivity If you cannot be positive then at least be quiet!

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