IMF more optimistic over UK economy

The International Monetary Fund has upgraded its forecast for the UK economy, amid “welcome signs” that the pace of economic activity is finally accelerating after the global crash.

By The Newsroom

Published 9th Oct 2013, 01:01 BST

The organisation said it now expected the UK to grow by 1.4 per cent this year rising to 1.9 per cent in 2014, compared to its last forecast in July of 0.9 per cent growth in 2013 and 1.5 per cent next year.

But in its latest World Economic Outlook, the IMF said that it would still take years before the UK economy recovers fully from the effects of the collapse of 2008.

It suggested the Government should now bring forward public investment projects to offset the squeeze on near-term Whitehall spending.

“In the United Kingdom, recent data have shown welcome signs of an improving economy, consistent with increasing consumer and business confidence, but output remains well below its pre-crisis peak,” it said.

“Growth is expected to be about 1.5 per cent in 2013 and 2 per cent in 2014 ... but output levels will remain below potential for many years.”

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