Tuesday May 23 2023 10:10 am
The world’s lender of last resort has raised its GDP expectations to 0.4 per cent in 2023 in latest forecasts (Photo by Leon Neal/Getty Images)
The International Monetary Fund (IMF) today joined a group of top economic institutions rejecting calls that Britain will face a hard recession this year.
The world’s lender of last resort raised its GDP expectations to 0.4 percent in 2023 in fresh forecasts.
It said just months ago that Britain’s economy would shrink by 0.3 percent this year, which would have put the country at the bottom of the G7 growth table.
The new projections mean Germany is now set to become the weakest economy in the group of rich countries in 2023.
Today’s upgrade was driven by “resilient demand in the context of falling energy prices, with the UK economy expected to avoid recession and maintain positive growth in 2023,” the forecast said.
However, the Washington-based organization said the outlook for growth remains “low”.
Chancellor Jeremy Hunt welcomed the jump in GDP.
He said: “Today’s IMF report shows a major upgrade in the UK growth forecast and credits our action for restoring stability and reducing inflation.”
“It compliments our childcare reforms, the Windsor Framework and business investment incentives. If we stick to plan, the IMF confirms that our long-term growth prospects are stronger than those of Germany, France and Italy – but the work is not yet done.
Earlier this month, the Bank of England, which predicted 15 consecutive months of contraction and the longest recession in a century, cut its GDP estimates in the biggest upgrade to its forecasts since its independence in 1997. increased by just over two percent.
More to follow.
Read more
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Source: www.cityam.com
