Goldmans' O'Neill says OBR is too bearish

Goldman Sachs chief economist Jim O'Neill believes the Office for Budget Responsibility is being too cautious with its prediction of 2.6% growth in the UK next year, claiming the economy could in fact expand by more than 3%.

In a comment piece for the London Evening Standard, O’Neill says the OBR forecasts cleared the path for the Chancellor to announce a tougher Budget than most signals appeared to be hinting at. He says: “This is also in line with the traditional practice for politicians: get the tough stuff done early so that the electorate can not punish the Government.” However he warns the Chancellor George Osborne to proceed with caution. He says: “The OBR revised down the “official” growth forecast for the next year from 3.25 to 2.6 per cent, which adds to the impression that all is still not w...