The U.K.’s hopes of a meaningful economic recovery in the near-term were dealt another blow by the International Monetary Fund (IMF) on Tuesday when it singled out the country’s fiscal plan for criticism.
The IMF predicted the U.K. economy would grow by 0.7 percent this year and by 1.5 percent in 2014 – cutting both forecasts by 0.3 percentage points. The combined downgrade was larger than for any other advanced economy. The IMF also criticized the government’s austerity program.
“Greater near-term flexibility in the path of fiscal adjustment should be considered in the light of lackluster private demand,” it said on Tuesday.
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