ECONOMIST VIEWS: WILL THE OBR REVISE ITS FORECASTS?

 
Julian Harris
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MICHAEL SAUNDERS | CITIGROUP

Growth is exceeding predictions despite Irish troubles, and business investment is strong. The OBR can revise down this year’s deficit forecast by £10bn, and next year’s by around £25bn.

GEORGE BUCKLEY | DEUTSCHE BANK

The OBR may revise up its growth forecasts this year, yet forecasts for following years seem too optimistic. Going forward, there is a risk that the deficit does not fall as quickly as is hoped.

ALAN CLARKE | BNP PARIBAS

The UK remains ahead of schedule, and growth should be revised up to around 1.7 or 1.8 per cent. But real incomes will continue to fall in 2011, and fiscal consolidation could bite harder.