He United Kingdom will avoid entering a recession in 2023 and its economy is expected to maintain a “positive growth”indicated this Thursday the International Monetary Fund (IMF) in an update on the outlook for the country.
However, the body admitted that the growth outlook for the UK is “moderate” when estimating that the increase will be situated this year around the 0.4%.
Last April, the IMF had estimated that the economic production of the United Kingdom could suffer a contraction of the 0.3%.
Falling energy prices are expected to help reduce “substantially year-on-year inflation to around 5% by the end of 2023, and below the target of the 2% by mid 2025″the IMF said.
UK year-on-year inflation is in the 10.1%well above the 2% which has the Bank of England marked on it.
IMF Managing Director Kristalina Georgieva tweeted today that “The UK authorities have taken decisive steps to boost macroeconomic and financial stability and are focused on fighting inflation and on reforms to boost productivity, labor supply and investment.”
According to data released earlier this month by the Office for National Statistics (ONS), Britain’s gross domestic product (GDP) grew on 0.1% in the first quarter of 2023, compared to the 0.0% of the previous quarter.
UK Chancellor of the Exchequer Jeremy Hunt said today that the IMF forecast is a “big improvement” for the UK’s growth prospects and credits its measures to restore stability and control inflation.
The minister defended the government’s actions and stressed that, if they are successful, “The IMF will confirm that our long-term growth prospects are stronger than those of Germany, France and Italy.”
The British government has chosen not to cut taxes while the Bank of England has ordered interest rate increases to control inflation.
The ONS reported today that the accumulated British net debt stood at 2.53 trillion pounds (2.9 trillion euros) at the end of March, a 99.2% of the country’s gross domestic product (GDP), a level not seen since the early 1960s.
During that month, the indebtedness reached 25.6 billion pounds (29.44 billion euros), 11.9 billion pounds (13.685 billion euros) more than in April last year, according to the ONS.
Source: EFE
Source: Gestion
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