Britain slashed its economic outlook on Wednesday, forecasting the economy would shrink by 0.1 percent this year and then return to growth in 2013, according to figures published alongside a budget update.
The new forecast, issued by the Office for Budget Responsibility fiscal watchdog, compared with the prior 2012 growth estimate of 0.8 percent that was given in the annual budget in March.
The OBR added that British gross domestic product was forecast to grow by 1.2 percent in 2013. That compared with previous guidance for greater expansion of 2.0 percent.
Britain slashes economic growth forecasts
