The U.K. economy will grow much more slowly over the coming two years than previously forecast, although the government’s budget deficits will be slightly smaller than anticipated, Treasury Chief Jeremy Hunt told lawmakers Wednesday.

The independent Office for Budget Responsibility expects the U.K. economy to grow by 0.6% this year, having previously forecast a contraction of 0.2%. But it lowered its growth estimate for next year to 0.7% from 1.8% previously, and its forecast for 2025 to 1.4% from 2.5%.