Dwelling workplace minister Chris Philip has dismissed the Worldwide Financial Fund’s (IMF) financial forecast for the UK, claiming the organisation’s predictions are “unduly pessimistic”.
Mr Philp, the policing minister, mentioned this morning that the UK has a “observe file” of “constantly outperforming” the IMF’s forecasts — that’s regardless of new figures displaying the UK economic system flatlined in February.
It comes after the organisation predicted that the UK would contract by 0.3 per cent this yr earlier than rebounding to develop by one per cent subsequent yr. The UK is alleged to be being outpaced by sanctions-hit Russia, with Germany the one different main nation predicted to expertise an financial contraction.
This morning it was additionally revealed that no financial progress was recorded in February, with industrial motion mentioned to be appearing as a drag on GDP as 1000’s of staff walked out.
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Darren Morgan, director of financial statistics on the Workplace for Nationwide Statistics (ONS), detailed that: “There was … a lift from retailing [in February], with many outlets having a buoyant month. These had been offset by the results of Civil Service and lecturers’ strike motion, which impacted the general public sector”.
The broader image, Mr Morgan instructed the BBC’s “In the present day” programme, is that the economic system has been “just about flat since final Spring”.
The brand new ONS figures adopted progress of 0.4% in January and affirmation that the UK economic system averted recession within the second half of 2022 and even grew 0.1% within the remaining three months of the yr.
Mr Philp was requested if he was involved by the IMF forecast and by the most recent ONS figures.
He instructed Sky Information: “Nicely, initially these IMF forecasts typically are unduly pessimistic. Now we have acquired a observe file within the UK of constantly outperforming the IMF forecasts”.
“Clearly we want to see progress and in reality in 2021 we the UK had file GDP progress within the G7. In 2022 we additionally had file progress, the best progress relatively, amongst G7 nations.
He added: “Now we have had two straight years of high G7 progress. We might clearly wish to proceed that development”.
Additionally responding to the brand new figures was chancellor Jeremy Hunt, who mentioned: “The financial outlook is trying brighter than anticipated — GDP grew within the three months to February and we’re set to keep away from recession because of the steps now we have taken by an enormous package deal of price of dwelling help for households and radical reforms to spice up the roles market and enterprise funding.”
Shadow chancellor Rachel Reeves, mentioned: “Regardless of our huge promise and potential as a rustic, Britain remains to be lagging behind on the worldwide stage with progress on the ground.
“The fact of progress inching alongside is households worse off, excessive streets in decline and a weaker economic system that leaves us weak to shocks.
“These outcomes are precisely why Labour’s mission to safe the best sustained progress within the G7 is so essential – it’s that degree of ambition that we have to strengthen our economic system, get our excessive streets thriving once more and make households throughout each a part of Britain higher off.”
