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Friday, April 24, 2009

Darling's Budget Holed Below The water Line

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.

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