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3/3, 1:42 PM (Source: TeleTrader)
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Sunak: OBR forecast shows 4% GDP growth in 2021

Chancellor of the Exchequer Rishi Sunak announced on Wednesday the Office for Budget Responsibility's (OBR) forecasts on economic growth. According to Sunak, the OBR now projects GDP growth of 4% in 2021, followed by 7.3% in 2022. The OBR also forecasts GDP growth of 1.7%, 1.6% and 1.7% in 2023, 2024 and 2025, respectively.

The estimates point to a "swifter and more sustained recovery" than expected in November, Sunak told Parliament, adding that current projections indicate an economic recovery to pre-pandemic levels by the middle of next year. However, the OBR still believes the UK economy will be 3% smaller five years from now than it would have been without the coronavirus pandemic.

Before revealing his budget, Sunak vowed to continue doing "whatever it takes" in order to support the economy amid the "acute damage" caused by COVID-19.

Breaking the News / JC