Liz Truss repeats Keir Starmer’s ‘growth, growth, growth’ economic slogan
Britain will see slower economic growth in 2023 as consumer spending catches up with rampant inflation and higher interest rates, the International Monetary Fund (IMF) has warned.
In a forecast prepared before the government unveiled its mini-budget which set out sweeping tax cuts, including on stamp duty and income tax, the IMF projected a growth rate of 3.6 per cent in 2022, a 0.4 per cent upgrade to its previous forecast in July.
The growth, however, falls sharply to just 0.3 per cent in 2023 with IMF downgrading its forecast by 0.2 per cent from a previous 0.5 per cent estimate.
“The fiscal package is expected to lift growth somewhat above the forecast in the near term, while complicating the fight against inflation,” it said.
It added that there have been investor concerns about the UK’s fiscal and inflation outlook since the debt-financed tax cuts were announced which has also led to a sharp fall in the value of the pound.
UK’s economic growth to slow further in 2023 as incomes squeezed: IMF
The UK’s economic growth could improve in the short term but sharply reduce in 2023 as consumer spending catches up with rampant inflation and higher interest rates, the International Monetary Fund (IMF) has warned.
The slowdown of the global economy has intensified since April as it faces “stubbornly” high inflation, the IMF said in its latest World Economic Outlook report.
In the UK, the economy is projected to grow at a rate of 3.6 per cent in 2022, a 0.4 per cent upgrade from the IMF’s previous forecast in July.
The Bank of England is pictured in central London on 27 September 2022
(AFP via Getty Images)
However, growth will then fall sharply to just 0.3 per cent in 2023 with the IMF downgrading its forecast by 0.2 per cent from a previous 0.5 per cent estimate.
Just Germany and Italy will see weaker growth than the UK among the world’s advanced economies, with the IMF forecasting decline for both countries in 2023.
Meanwhile, Russia’s economy is expected to contract by 2.3 per cent next year, the biggest fall of all the nations included in the projections.
Namita Singh11 October 2022 05:43
Welcome to The Independent’s UK politics blog for Tuesday, 11 October 2022 where we provide the latest on everything that’s buzzing in Westminster.
Namita Singh11 October 2022 05:04
Kaynak: briturkish.com
