Britain will grow faster this year than previously expected according to the International Monetary Fund (IMF), in the first major upgrade of the UK’s economic outlook for almost three years.
The economy will expand by 0.9% compared with the previous forecast of 0.6%, the IMF said in its quarterly global financial health check. But a lacklustre performance by developing countries, a prolonged eurozone recession and US spending cuts will hamper plans to increase exports and restrict Britain’s GDP growth in 2014 to 1.5%, it added.
George Osborne will be cheered by the more upbeat outlook after suffering two years of brickbats from the IMF, which has lectured the government on taking a more expansionary stance and delaying public spending cuts. Yet growth of 1.5% next year could still be too weak to improve employment or spark a revival in manufacturing investment, which the chancellor believes is necessary for a more sustainable recovery.
via The Guardian