Less than 48 hours after announcing his budget, and fantasy forecasts, Alistair Darling has found that it has been holed below the water line by a shock fall in GDP.
GDP fell by 1.9% in the first quarter of 2009.
Darling predicted a fall of 1.6%, that is a forecast error of 18.75%.
Given that Darling managed to get this figure so badly wrong, even though he only had a two day lag, it is safe to assume that his 3.5% growth prediction for 2011 is wildly overoptimistic; ie the budget has been holed below the water line.
No comments:
Post a Comment