IMF raises UK growth predictions
Mon Jul 15, 2013 11:59 AM
The International Monetary Fund (IMF) has raised UK growth predictions for the next year - but downgraded those for the Eurozone, the US and the emerging markets
The IMF downgraded China’s growth forecast by 0.6 percentage points, partly because of a credit crunch in the country. It also downgraded those of the other BRICS nations (Brazil, Russia, India and South Africa). This is likely to have a knock-on effect for businesses who export to these countries, although they are still predicted to experience strong growth – especially compared to Europe which the IMF’s chief economist Olivier Blanchard said “continues to “struggle”.
The IMF downgraded its growth prediction for the world economy as a whole from 4% to 3.8%. However, there was good news for business owners in Britain, as the economic forecast for the UK was raised from 0.3 percentage points to 0.9%. Reacting to the news, a Treasury spokesman said: “The IMF has confirmed that the UK economy is moving from rescue to recovery, revising up its growth forecast for this year. But the IMF again warns of the continued risks to the global economy, showing that the recovery cannot be taken for granted."
It follows a British Chamber of Commerce report earlier this month which said that UK business confidence is at a six-year high.