Britain lowers growth forecasts

BRITAIN’S chancellor of the exchequer George Osborne said Britain’s economic growth will be slower than forecast this year and next, forcing the government to borrow more and extend spending cuts to narrow the budget deficit.

Growth will be 0.9% in 2011, half the 1.7% forecast in March, and 0.7% next year, less than a third of the previously predicted 2.5%, Osborne said.

The deficit will reach £120 billion (€140bn) in the financial year ending in March 2013, more than the £101bn previously forecast.