8th October 2013
The UK has been upgraded by the International Monetary fund even as it cuts its global growth forecast.
The UK has received a substantial upgrade from July’s 0.9% estimate to 1.4% for this year and growth next year of 1.9% up from 1.5%. Global growth has been cut to 2.9% down 0.3%. It has cut global growth next year to 3.6% down 0.2%,
It now expects global growth of 2.9% this year, a cut of 0.3% from July’s estimate. In 2014 it expects global growth of 3.6%, down 0.2% and blames weaker growth in emerging markets.
The IMF says its boost to the UK, which is higher than for any other country, is based on higher consumer and business confidence.
The IMF still says it will take many years to recover the 2008 position and that the government should still bring forward infrastructure spending.
Globally, however, the IMF is worried about countries such as Brazil, China and India. It also expects growth in Russia, China, India and Mexico to be slower than it forecast in July.