Chancellor George Osborne has denied that the UK is on the verge of another recession, despite recent warnings by think tanks on the country’s growth.
In his 2011 autumn statement, the chancellor says the Office for Budget Responsibility (OBR) expects the country to grow by 0.9% in 2011 and by 0.7% in 2012, an assessment he agrees with.
Osborne also says the economy will grow by 2.1% in 2013, by 2.7% in 2014 and by 3% in both 2015 and 2016.
Yesterday, the Organisation for Economic Cooperation and Development warned that the UK is on the brink of another recession, caused by the knock-on effects of the eurozone debt crisis. Europe is also close to recession, the group says.
However, the chancellor stressed that the OBR’s forecast relies on a successful resolution to the eurozone debt crisis and concedes that an economic slowdown on the continent will severely damage domestic growth.
“If the rest of Europe heads into recession, it could prove hard to avoid one here,” Osborne told parliament.