Budget 2012: Growth estimate revised to 0.8%

The government expects the UK economy to grow by 0.8% during 2012 and 2% in 2013, chancellor George Osborne said in today’s Budget speech.

The forecast, made by the Office for Budget Responsibility (OBR), is a slight upward revision on its 2012 growth estimate of 0.7% announced in last year’s autumn statement.

However, Osborne said the OBR recognises that the eurozone sovereign debt crisis and rising oil prices are significant risks for its growth outlook.

The OBR also expects the UK to avoid technical recession in 2012 and says more economic momentum was carried over into the new year than expected.