Budget 2012: 'British economy to avoid recession' Chancellor George Osborne has predicted that the British economy will avoid a technical recession Speaking in the Commons, Mr Osborne said The Office for Budget Responsibility (OBR) has estimated that Britain will be in positive growth within the first quarter of 2012. The OBR confirmed that the Government is on course to eliminate its structural current deficit by 2016-17. According to Mr Osborne, the OBR's forecast for UK growth is 0.8 per cent in 2012, 2 per cent in 2013, 2.7 per cent in 2014 and 3 per cent in both 2015 and 2016. The UK is also on course to reach targets for debt to be falling as a percentage of national income by the end of the Parliament in 2015-16. Public Sector net debt is now set to peak at 76.3 per cent in 2014-15, almost 2 per cent lower than previously forecast, before falling the following year. Mr Osborne explained that these results prove that the deficit reduction plan is on course and the government will not waiver from it.