Lates News

Jupiter International Chief Economist Mohit Kumar said that the UK government is facing a difficult choice. We have a negative outlook on the UK's fiscal prospects. Our expectations for economic growth are far lower than the forecasts of the UK Office for Budget Responsibility (OBR). We expect the UK's economy to grow at a rate of 1-1.2% over the next three years, while the OBR's forecast is 1.7-1.9%. Lower economic growth will make the Chancellor of the Exchequer's fiscal plans unrealistic. Even if the government raises taxes, we do not believe that tax increases will bring in as much revenue as the government hopes. Therefore, the government needs to make difficult decisions to bring the fiscal deficit situation to a more reasonable level. The recent market reaction indicates investors' concerns about the government's ability to reduce the fiscal deficit.