Jefferies: The UK's fiscal outlook is not very optimistic.

Jin10 data reported on July 2, Chief Economist of Jefferies International, Mohit Kumar, stated that the UK government is facing a difficult choice. We hold a negative view on the UK's fiscal outlook. Our expectations for economic growth are far below the forecasts of the UK Office for Budget Responsibility (OBR), as we anticipate a growth rate of 1-1.2% for the UK economy over the next three years, while the OBR predicts 1.7-1.9%. The lower economic growth will make the Chancellor's fiscal plans unrealistic. Even if the government raises tax rates, we do not believe that the tax increases will bring in as much revenue as the government expects. Therefore, the government needs to make tough decisions to bring the fiscal deficit situation under control. Recent market reactions indicate investors' concerns about the government's ability to reduce the fiscal deficit.