UK

UK will avoid recession in 2023 – IMF

Chancellor Jeremy Hunt welcomed the forecast in the IMF report (PA)
Chancellor Jeremy Hunt welcomed the forecast in the IMF report (PA) Chancellor Jeremy Hunt welcomed the forecast in the IMF report (PA)

The International Monetary Fund (IMF) said it is not expecting the UK to enter a recession this year.

In an update to recent forecasts, it said: “Buoyed by resilient demand in the context of declining energy prices, the UK economy is expected to avoid a recession and maintain positive growth in 2023.”

But it said the outlook for growth remains “subdued”, forecasting growth of 0.4% this year.

In April, it forecast that UK output was expected to contract by 0.3%.

The IMF said the change reflects “higher-than-expected resilience” in both demand and supply, referencing improved confidence in reduced post-Brexit uncertainty and a declining energy costs.

Chancellor Jeremy Hunt said the IMF report shows a “big upgrade” for the country’s growth prospects and credits the Government’s “action to restore stability and tame inflation”.

“It praises our childcare reforms, the Windsor Framework and business investment incentives,” he said.

“If we stick to the plan, the IMF confirm our long-term growth prospects are stronger than in Germany, France and Italy – but the job is not done yet.”