British gov't cuts growth forecast

British economy is expected to contract in 2012 as the government on Wednesday revised down its economic forecasts from 0.8 percent growth to 0.1 percent shrinking. British Chancellor George Osborne on Wednesday said in his Autumn budget statement that the country's economy would grow 1.2 percent next year and 2 percent in 2014. The year 2015 and 2016 forecasts were cut to 2.3 and 2.7 percent respectively, according to revised projections from the Office for Budget Responsibility. "It is taking time but the British economy is healing after the biggest financial crash in our lifetime," said Osborne. The new forecast is consistent with that made by the Organization for Economic Cooperation and Development and the British Chamber of Commerce. Official data showed Britain had escaped recession in the third quarter this year after three quarters of contraction, with its economy growing 1 percent. But analysts believed the third quarter growth was due to one-off factors such as the London Olympics and public holidays in the second quarter.