Alistair Darling on Sunday prepared to acknowledge the biggest forecasting error made by a British chancellor, warning there was unlikely to be a resurgence in the economy this year. Mr Darling is expected to use his April 22 Budget to admit the recession is much worse than he forecast, predicting the economy will shrink by at least 3 per cent in 2009 and that the deficit will top 10 per cent of national income, the FT said.  This amounts to the most drastic revision of a chancellor’s Budget debt forecasts in modern history, laying bare a rapid deterioration in public finances that will usher in an era of fiscal austerity.

This entry was posted by Stacy-Marie Ishmael on Monday, April 6th, 2009 at 5:05 and is filed under Capital markets, People. Tagged with Alistair Darling. Edit this entry.