Chancellor George Osborne has revealed the Office of Budget Responsibility has upgraded its outlook for UK growth to 3 per cent.
During his Autumn Statement speech, Osborne announced the OBR has revised its 2014 figures for UK GDP from a previous estimate of 2.7 per cent in March up to 3 per cent.
The GDP forecast for 2015 was slightly up to 2.4 per cent from 2.3 per cent in March. However for 2016 the forecast was revised down from 2.6 to 2.2 per cent, before rising to 2.4 per cent in 2017. By 2018/19 the economy is forecast to grow at 2.3 per cent.
Osborne said: “The warning lights are flashing over the global economy. The OBR has revised down its forecasts for global growth and says the slowdown will be particularly acute in export markets such as Europe.