Britain slashes growth forecasts over five years

Britain's economy will grow far more slowly than expected over the next five years as it faces Brexit uncertainty and weak productivity, finance minister Philip Hammond said Wednesday.

Gross domestic product will expand 1.5 percent this year, by 1.4 percent in 2018, 1.3 percent in both 2019 and 2020 and 1.5 percent in 2021, Hammond revealed in a raft of forecast downgrades in his annual budget.

The predictions, from the Office for Budget Responsibility (OBR) fiscal watchdog, contrasted with prior growth guidance of 2.0 percent, 1.6 percent, 1.7 percent, 1.9 percent and 2.0 percent respectively.

Despite the bleak outlook, Hammond pointed to an economy still growing as the country enjoys its lowest unemployment rate since 1975.

"I report today on an economy that continues to grow, continues to create more jobs than ever before and continues to confound those who seek to talk it down," Hammond told lawmakers.

"An economy set on a path to a new relationship with our European neighbours outside the European Union," he added.

Turning to borrowing, Hammond downgraded his official forecast for the deficit.

Government borrowing was expected to hit £49 billion in the current fiscal year which runs through to April. That was £8.4 billion lower than given previously.

"We are on track to meet our fiscal rules," Hammond noted.

He added: "After taking account of all decisions since the spring budget, the OBR's GDP revision and the measures I announce today, borrowing will fall in every year of the forecast."