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UK’s economic forecast downgraded

UK’s economic forecast downgraded

Category: Economy

Updated: 09/10/2012
First Published: 09/10/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The International Monetary Fund (IMF) has downgraded its forecast for the UK economy, predicting that it will shrink by 0.4% this year, not 0.2% as initially stated in July.

The IMF believes that the UK economy should grow by 1.1% next year, although this is down from its previous forecast of 1.4%.

The IMF also downgraded its estimate for global growth.

Hopes for a global economic recovery have weakened according to the IMF, mainly as a result of government policies failing to ignite confidence.

Prime Minister David Cameron defended the claims, declaring: "What is happening is a rebalancing of our economy.

"We need more private sector growth, we need a smaller public sector, we need to make more, sell more overseas and manufacture more.

"It's a slow and difficult healing process, but it is taking place."

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