13-03-2008
Darling GDP forecast 'optimistic'
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Chancellor Alistair Darling, who delivered his first Budget speech yesterday, has a more optimistic view than forecasters when it comes to the future growth in the UK economy, according to experts.
Mr Darling suggested 2008 would see GDP growth of between 1.75 per cent and 2.25 per cent, which was a cut from the pre-Budget report forecast of two to 2.5 per cent.
David Miles, Morgan Stanley chief UK economist, told BBC Two's Newsnight that Mr Darling's predicted growth rate was "slightly on the optimistic side of the overall consensus".
This sentiment is shared by Richard Lambert, the director general of the Confederation of British Industry (CBI).
He told Channel 4 News that the chancellor's forecasts for the next three years are "a bit rosy.
"They're certainly a bit higher than those being made now by outside analysts," Mr Lambert commented.
However, the CBI director general said he was not of the opinion that 2008 would be a "very bad" year in economic terms.
"But it's certainly going to be a slower year than we've seen in the last few years," he concluded.