Uncertainty about global growth prospects has been reflected in volatility in financial markets, with world stock markets seeing trillion wiped off their value at the start of the year.As one of the most open economies in the world, the UK is not immune to global slowdowns and shocks.All this means the challenge of delivering a sustained rise in living standards following the financial crisis is greater here in Britain than the Office for Budget Responsibility () had previously forecast.This is precisely why the UK has been working through its long-term economic plan.In addition to measures announced at the Spending Review and Autumn Statement, the government will: This Budget backs business and enterprise to drive up productivity growth and create job opportunities.
Over 5 billion in capital flowed out of emerging markets last year.
So this Budget sets out long-term solutions to long-term problems and invests in the education, builds the infrastructure and supports the savings of the next generation. Since the Spending Review and Autumn Statement was published in November 2015, the outlook for the global economy has worsened and global growth has slowed, with the International Monetary Fund () predicting global growth of 3.4% in 2016, 0.2 percentage points lower than its October forecast.
In this Budget, the government will take action to: ) to be the fastest growing major advanced economy this year. In advanced economies, there are growing concerns about productivity growth, high debt levels and deflationary risks.
The UK responds to lower productivity growth and a more difficult global economy by: in 2020-21.
The government’s first duty to the next generation is to put the public finances on a sustainable footing.