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UK's NIESR sees budget deficit hitting 8% in 2022/23

·1-min read
People walk across Millennium Bridge with the City of London financial district seen behind, amid the coronavirus disease (COVID-19) pandemic, in London

LONDON (Reuters) - Britain's budget deficit looks set to rise to 8% of gross domestic product during the current financial year, the National Institute of Economic and Social Research (NIESR) forecast on Friday following finance minister Kwasi Kwarteng's mini-budget.

NIESR also predicted Britain's budget deficit would not fall below 100 billion pounds ($111 billion) in future years, even after temporary energy support measures expire, due to the tax cuts which Kwarteng announced.

Britain's Office for Budget Responsibility forecast in March that Britain would have a budget deficit of 3.9% of GDP or 99.1 billion pounds in 2022/23, falling to 50.2 billion pounds or 1.9% of GDP in 2023/24.

($1 = 0.9031 pounds)

(Reporting by David Milliken; editing by William James)