IMF slashes U.K. growth outlook, adding pressure on Finance Minister Jeremy Hunt
The Hindu
All other G7 economies are predicted to grow this year, mostly at a stronger pace than the IMF forecast three months ago
Britain is the only Group of Seven nation to have suffered a cut to its 2023 economic growth outlook in International Monetary Fund forecasts published on Tuesday, adding to pressure on finance minister Jeremy Hunt to come up with a growth plan.
Britain's flagging economy now looks set to shrink by 0.6% this year, a sharp downgrade from previously expected growth of 0.3% in the IMF's last forecast in October.
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All other G7 economies are predicted to grow this year, mostly at a stronger pace than the IMF forecast three months ago.
The IMF said Britain would struggle with a combination of factors including higher taxes announced by Mr. Hunt late last year as he tried to restore the confidence of investors after September's "mini-budget" of former prime minister Liz Truss.
Britain had also been hit particularly hard by the surge in gas prices after Russia's invasion of Ukraine as it relied on gas for much of its power generation, and it faced a shortage of workers too that was holding back the economy, the IMF said.
The Bank of England's sharp increase of interest rates to try to stamp out the risks from a jump in inflation would take its toll as well.