IMF rejects criticisms of its latest UK growth forecast

11 Oct 2023

The International Monetary Fund (IMF) has rejected government criticisms of its latest UK economic growth forecast.

According to the IMF's forecast, the UK is on track to have the slowest economic growth of any G7 economy, behind Germany, France, the US, Italy, Canada and Japan. It estimates that the UK economy will grow by just 0.6% in 2024 – the slowest growth rate of any developed country.

The IMF also predicts that the UK will have the highest inflation rates in 2024. In its report, the IMF said that the 'decline in UK growth reflects tighter monetary policies to curb still-high inflation and lingering impacts of the terms-of-trade shock from high energy prices'.

Commenting on the forecast, Pierre Olivier Gourinchas, Chief Economist at the IMF, said: 'We're above the Bank of England estimate [for growth] for next year, so I don't think we are particularly pessimistic. I think we're trying to be honest interpreters of the data here.'

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