Economists revise growth forecasts down
Independent economists continue to revise down their forecasts for UK economic growth. The October edition of the Treasury’s round-up of the forecasts for the UK economy made by City and other independent economists shows that their forecasts for both 2011 and 2012 are significantly more gloomy than they were as recently as last month:
- Average forecast for 2011 is 1.0% GDP growth, last month it was 1.2%.
- Average forecast for 2012 is 1.5%, last month it was 1.8%.
These surveys always include some that are a couple of weeks old, so HM Treasury also gives the average for new forecasts and the movement is in the same direction:
- Last month new surveys forecast 2011 growth at 1.1%, this month this is down to 0.9%
- Even more worryingly, the average new forecast for 2012 is down from 1.7% to 1.3%.