economy

How to read the budget watchdog’s numbers for the economy

In addition to the financial debt and spending numbers, the OBR will also expose its forecasts for growth and unemployment. Specified the unparalleled uncertainty, the OBR outlined three unique paths for the economic climate in its Fiscal Sustainability Report in July: an upside, central and draw back scenario.

With a second lockdown sending the restoration back again into reverse and the Chancellor extending the furlough plan into next 12 months, the OBR is likely to revise these figures.

Back in July, its central scenario predicted that unemployment would peak at 12pc even though GDP would collapse 12.4pc in 2020. That would be followed by a quick restoration for the economic climate, with growth hitting eight.7pc in 2021 and unemployment returning to 5.3pc by 2024. Nonetheless, in that consequence GDP was nonetheless 3pc reduced by 2025 than it was in its March forecast.

How does the Government’s spending critique impact you?

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