The IMF now expects the UK to avoid a recession
The U.K. will avoid recession in 2023, according to the IMF.
LONDON — The International Monetary Fund said Tuesday that it expects the U.K. to avoid entering a recession and "maintain positive growth" in 2023.
The Fund said resilient demand in the context of declining energy prices had encouraged the positive, if "subdued" outlook.
The United Nations financial agency noted that British economic activity had seen a significant slowdown, compared to last year, and that inflation, which is currently at 10.1%, remains "stubbornly high." The U.K. economy continues to feel the impact of Russia's full-scale invasion of Ukraine, along with lingering supply scarring from the Covid-19 pandemic.
British Finance Minister Jeremy Hunt on Tuesday said that "the job is not done yet" on tackling inflation and improving Britain's growth prospects. He highlighted that high inflation and high energy costs were challenges for the U.K. and internationally.
"We're working every day to grow our economy and deliver on this and the other government priorities, and the IMF say we are doing just that," Hunt said at an IMF press conference.
In its report, the IMF said that the U.K. had weathered the recent global banking stresses well, alluding to the recent collapse of Credit Suisse and to turmoil in the sector in the U.S.
Source: CNBC
