he International Monetary Fund He said on Tuesday that he no longer expected a recession in Britain this year, while praising measures taken by the government to stabilize the economy and combat inflation and warning against tax cuts ahead of the election.
According to the International Monetary Fund, GDP will grow by 0.4% in 2023, instead of contracting by 0.3% as expected in April. The previous forecast was the weakest for any major economy this year, but the new forecast is off UK It is ahead of its counterparts in the rich world, such as Germany.
Although the International Monetary Fund warned that the outlook remained weak, it said Prime Minister Rishi Sunak’s government was on the right track, in contrast to its concerns about the direction of economic policy under his predecessor, Liz Truss.
“The British authorities have taken decisive and responsible steps in recent months,” International Monetary Fund Director Kristalina Georgieva said in a press conference on Tuesday. “What we are seeing is that the government is prioritizing, and rightly so, combating inflation.”
Sunak and Finance Minister Jeremy Hunt took office in October after Truss’ short tenure wreaked havoc on financial markets.
The IMF said Britain’s improving outlook reflects unexpected resilience in demand, supported in part by faster-than-usual wage growth, higher public spending and improved business confidence.
the Low energy costsafter strong increases last year, and Supply chain standardization The World Cup finals also contributed to this.
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