UK economy forecast to contract by 0.2% in 2023

A woman crosses London Bridge in London

LONDON (Reuters) - Britain's economy is forecast to contract by 0.2% in 2023, finance minister Jeremy Hunt said on Wednesday, citing the latest projections from the Office for Budget Responsibility (OBR).

The new figure for 2023 compared with a forecast for a contraction of 1.4% in the OBR's previous outlook published in November.

The OBR forecast economic output would grow by 1.8% in 2024 and by 2.5% in 2025, Hunt said as he gave a budget speech to parliament, compared with the OBR's previous forecasts of growth of 1.3% and 2.6% respectively.

(Reporting by Andy Bruce; Editing by Kate Holton)