The Chancellor of the Exchequer delivered his 2011 Autumn Statement to Parliament at 12:30pm on 29 November 2011.
This is the Office for Budget Responsibility’s economic and fiscal outlook. It sets out forecasts for the economy and the public finances.
Economic Review – November 2011
- GDP growth was 0.5 per cent in the third quarter of 2011. Although this is a more solid pace of
growth than in recent quarters, growth over the year has also been 0.5 per cent, so an average of
just over 0.1 per cent in each quarter, and an average of 0.3 per cent over the last two quarters.
Although the economy continues to expand, it is at a relatively modest pace, particularly compared
to the stronger pace of growth observed in the middle of 2010, and compared to recoveries from the
previous two recessions in the early 1980s and early 1990s.
- The labour market appears to be reflecting the weakness of economic activity more closely now,
with unemployment rising and employment levels and rate falling. Wage growth continues to be
subdued and well below CPI inflation.
- The ongoing deterioration in the trade balance, into September, indicates that the positive
contribution to GDP growth seen in the first quarter of 2011 has not been sustained, despite the
continued weak value of sterling.
- Inflation came down by 0.2 percentage points, to 5 per cent in October, reflecting primarily a decline
in food prices due to widespread supermarket discounting and good harvests for a range of fruit