Investing.com — Britain’s Office for Budget Responsibility (OBR) has reduced its medium-term productivity growth forecast to 1%, down from the previous 1.3% projection made in March, according to estimates published Wednesday on the budget watchdog’s website.
The revised forecast was released ahead of finance minister Rachel Reeves’ budget statement.
“The UK’s productivity performance has undershot our forecasts, despite several substantial downgrades since 2010, as a significant rebound from recent negative shocks has not materialised,” the OBR stated.
The budget watchdog clarified that the downward revision was not attributed to any specific government policies. Instead, the OBR linked the reduction to global trade policy and other structural trends that are likely to affect Britain’s productive potential in the future.
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