Monday, 29 November 2010


The OBR has reviewed its projections for the economy.  In the area of public sector jobs they have reviewed  public job losses down from 490,000 to 330,000.  This is based on the CSR decision to make a higher proportion of the cuts from the welfare budget rather than departmental budgets (with the warning that welfare cuts have proven much more difficult to realise in the past so this may have to be revisited).

Unsurprisingly they have cottoned on to the fact their predictions for this year were wrong and have raised their predictions to 1.8% but this good news in the short-term is tempered with predictions of lower growth in future years.  With the sobering warning that:

"The economy will continue to recover from recession, but at a slower pace than in the recoveries of the 1970s, 1980s and 1990s."

It also is predicting a further drop in house prices.

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