IMF growth forecasts
Although the IMF has downgraded its forecast for global growth it expects growth in the UK to be better than previously expected this year. In its previous forecast in July it predicted the UK would grow by just 0.9%, but it has now revised this up to 1.4%. Estimates for UK growth for 2014 and 2015 are now 1.86% and 1.97% respectively – still short of the UK’s long term trend rate of growth, but moving clearly out of recession. The main reason for the upgrade was stronger than expected business and consumer confidence indicators.