The UK will outperform the International Monetary Fund’s (IMF) financial forecasts because the physique has been “wrong” earlier than, a minister has stated.
The IMF has warned that Britain’s financial system will backpedal this yr and can fare worse than all different superior nations.
In its newest World Economic Outlook replace, the IMF downgraded its UK gross home product (GDP) forecast as soon as once more, predicting a contraction of 0.6% towards the 0.3% progress pencilled in final October.
The outlook for the yr forward places the UK far behind its counterparts within the G7 group of superior nations.
IMF’s dire outlook for UK financial system is ‘unsuitable’ – politics newest
The UK can be anticipated to be the one nation – throughout superior and rising economies – to endure a yr of declining GDP.
But transport minister Richard Holden disputed the forecast.
Asked if the IMF is unsuitable, Mr Holden instructed Sky News: “I think so.”
He added that the IMF has received its forecasts unsuitable “in the last couple of years”, and that he thinks “Britain can outperform its prediction like it has done for the last two years”.
The Conservative minister instructed Kay Burley that the UK financial system has “grown faster than Germany since 2016” and “grown faster than France, Italy, and Japan since 2010”.
Mr Holden additionally stated the physique’s report “praised” the actions Chancellor Jeremy Hunt and Prime Minister Rishi Sunak have taken to attempt to stabilise the nation’s funds.
Former cupboard minister Jacob Rees-Mogg agreed with Mr Holden, telling Sky News his earlier remarks concerning the IMF had been “sheer genius”.
“Well, first of all, this is a forecast,” Mr Rees-Mogg stated.
“And when was the IMF forecast last right? So you’ve got to understand that forecasts are not historic fact.”
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Responding to the IMF’s newest financial outlook, the chancellor stated “these figures confirm we are not immune to the pressures hitting nearly all advanced economies”.
“Short-term challenges should not obscure our long-term prospects – the UK outperformed many forecasts last year, and if we stick to our plan to halve inflation, the UK is still predicted to grow faster than Germany and Japan over the coming years,” he stated in a press release.
Shadow chancellor Rachel Reeves stated a Labour authorities would “spend wisely and get our economy growing”.
“The IMF’s economic outlook shows the UK is forecast to have the slowest growth in the G7 next year,” she stated.
“Once again, the Conservative economic strategy of low growth and high taxes is laid bare.”
Source: information.sky.com”
