Autumn Statement: Chancellor tipped to up UK growth forecasts

Howard Archer, chief UK and European economist at IHS Global Insight, has tipped Chancellor George Osborne to up the UK's GDP growth outlook and reveal a reduction in the deficit next week.

The Autumn Statement is due to be given on Thursday and, following a year of stronger than expected growth, Archer said he expects Osborne to announce a number of improvements in the underlying economy. Archer said GDP could come in close to 1.5% for 2013, well ahead of the government's previous forecast of 0.6%. He said the 2014 figure could also be upgraded to 2.5%, and with such a vast improvement in growth, Archer said Public Sector Net Borrowing Requirement (PSNBR) could come down faster than predicted. "Seven months into fiscal 2013/14, the underlying public finances are well...