LONDON Dec 5 Britain's fiscal policy watchdog
said on Wednesday that the economy would shrink in the fourth
quarter of this year, and that more than one million jobs would
be cut from the public sector by 2018 because of further
The independent Office for Budget Responsibility, which
produces forecasts that underpin the government's economic
policy, said gross domestic product would grow much more slowly
than it forecast in March.
"We now expect a small fall in GDP in the fourth quarter of
this year, followed by a gradual pick-up next year," the OBR
The watchdog said about 1.1 million general government jobs
would be lost "reflecting the additional year of spending cuts
pencilled in for 2017-18".