The International Monetary Fund said on Monday that the UK is no longer trending for slack this yearas published expectations were raised last Month warned that expectations remains faint.
The International Monetary Fund said that Britain’s GDP now looks like set to grow by 0.4% in 2023. In April, I predicted a downturn of 0.3%, weaker than expected of any specialty economy.
Fund said improved The outlook reflects unexpected flexibility of demandAssist in Part of the faster-than-usual growth push higher government spending and improved business trust.
the fall in High energy costs and normalization of global supply chains also Assist.
“Look for growthwhile improving somewhat in recent months, remains The International Monetary Fund said.
Economic activity has slowed significantly last year and inflation remains Stubbornly high yet stiff terms-of-trade shock because of Russia war in Ukraine and, to some extent, the labor shortage that caused the epidemic. added.
British inflation was likely to fall to around 5% by the end of this year from over 10% in March f should back to its 2% target in the middle of 2025 – wide in Line with expectations from the bank of England earlier this month.
the economy It was likely to grow by 1%. in 2024 and 2% in The next two years, before returning to Long-run growth rate of About 1.5%, the International Monetary Fund predicted.
Britain growth Maybe improved measures to address the impact of long-term illness on the job force and reduce policy And regulatory The uncertainty that hurt business Investment, International Monetary Fund added.
Recently amended agreement with European Union on post-Brexit trade including Northern Ireland andmore Measuring ‘approaches to abolishing EU law’ should He encourages business investment, he said.
The International Monetary Fund said more insistence in Inflation and its attendant increases are unsustainable in The wages closer to the term were threats to Britain’s economic outlook and that of the Bank of England should ensure monetary policy remained tight.
“However, the growing uncertainty around the macroeconomic outlook and the persistence of inflation is worth continuing review of the pace and immensity of Tightening monetary policy ”, International Monetary Fund added.
The Bank of England has raised borrowing costs at 12 consecutive meetings, raised interest rates to 4.5% this month, and financial Markets see it peak at 5% later this time year.
