The U.K. Chancellor George Osborne announced the annual budget on Wednesday. He raised the economic growth forecasts for 2015 and next year. The growth forecast for 2015 was upgraded to 2.5% from the previous estimate 2.4%.

The economy in the U.K. is expected to expand 2.3% in 2016, up from 2.2%.

The unemployment rate is expected to decline to 5.3% this year, while the inflation forecast was revised down to 0.2%.

Mr Osborne noted that the inflation forecast for the following three years will be revised down due to falling global oil and food prices.

The budget deficit is expected to decline to 4% in 2015-16 and to 2% the following year.

The U.K. chancellor pointed out that the government expect a budget surplus of 0.2% in 2018-19 and a 0.3% surplus in 2019-20.