Forex and other markets news
23.05.2023, 15:47
IMF expects UK economy to grow
IMF expects UK economy to grow
IMF expects UK economy to not enter recession this year but still sluggish
Reuters reported on Monday (May 23) that the International Monetary Fund (IMF) expects Britain's economy will not enter a recession this year. It has raised its forecast from the level published last month. But still warned that the overall picture of the British economy remains sluggish.
The IMF forecasts UK gross domestic product (GDP) to grow 0.4% in 2023 from the previous April. The IMF expects a 0.3% contraction.
The IMF said the improving outlook reflected the unprecedented resilience of demand. This was partially driven by faster-than-normal wage growth. reduction in energy costs Better Business Confidence and the normalization of global supply chains.
The IMF added that lower energy prices and loosening labor supply conditions (Slack) are expected to bring inflation down significantly. down to around 5% year-on-year by the end of 2023 and drop below the target of 2% by mid-2025.
The IMF forecasts the UK economy to grow 1% in 2024 and 2% in 2025 and 2026, before returning to a long-term rate of around 1.5%.
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