20 Jan 2014
IMF expected to raise growth forecast for the UK
FXstreet.com (Łódź) - According to Sky News, the International Monetary Fund should upgrade UK's growth forecast when it releases its updated World Economic Outlook on Tuesday. It is expected that the UK 2014 GDP projection will be raised from 1.9% to 2.4%.
Even though the forecast for the global economy is also to be upgraded from 3.6% indicated in October, the IMF seems to be especially optimistic about the recovery in the UK. Such a big growth projection increase would be positive for Chancellor George Osborne, boosting support for his economic policies.
Still, it is important to remember that the IMF itself has been warning that UK economic growth is excessively dependent on consumer spending instead of on exports or investment.
Even though the forecast for the global economy is also to be upgraded from 3.6% indicated in October, the IMF seems to be especially optimistic about the recovery in the UK. Such a big growth projection increase would be positive for Chancellor George Osborne, boosting support for his economic policies.
Still, it is important to remember that the IMF itself has been warning that UK economic growth is excessively dependent on consumer spending instead of on exports or investment.