The OBR has followed the Bank of England and downgraded its medium/long-term forecast of the growth in the productive potential of the economy. It now thinks only 1.6% is likely. This comes after 10 years of zero productivity growth has disappointed forecasts that were forever projecting the old growth rate of 2.5% to resume, something at the time that had a note of pessimism to it, since it was reasonable to speculate early on in the crisis that the productivity level extrapolated out from the old trend might one day be recovered [let alone the growth rate].
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The budget, the OBR, and futurology
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The OBR has followed the Bank of England and downgraded its medium/long-term forecast of the growth in the productive potential of the economy. It now thinks only 1.6% is likely. This comes after 10 years of zero productivity growth has disappointed forecasts that were forever projecting the old growth rate of 2.5% to resume, something at the time that had a note of pessimism to it, since it was reasonable to speculate early on in the crisis that the productivity level extrapolated out from the old trend might one day be recovered [let alone the growth rate].