The International Monetary Fund (IMF) has revised their economic predictions for the UK, dramatically upgrading the prospects of the nation’s economy over the coming year. After previously predicting a 0.3% contraction of the economy, the IMF now argues that the economy will grow by 0.4% this year, outstripping Germany’s stagnant economy to no longer be the weakest performing economy in the G7. In addition, the Bank of England has stated that inflation has “turned the corner”, and is now on track to fall sharply in the future due to falling energy prices.
This news will come as a relief to many who have feared that the current cost-of-living crisis could spark a recession to rival that of 2008. As a result of the UK Government’s policies, this has been avoided, and it looks more likely that the economy will return to healthy levels of inflation without a spike in unemployment that could severely impact the population.
Scottish Conservative MSP Pam Gosal tweeted showing her support for the renewed growth of the UK economy. She wrote:
“Thanks to the UK Government’s decisive action, the UK has reduced inflation and is set to return to growth – outpacing Italy, France, and Germany.
It has been a tough couple of years post-pandemic and there is still a lot of work to be done, but fantastic to see positive progress”.
The IMF did offer some warnings about the UK economy, in particular the fact that the impacts of interest rate hikes and inflation will continue to be felt strongly in the second half of 2023. However, these economic figures are the first signs that the measures put in place by the UK Government are helping to ease pressure on the nation’s economy. It is vital that these continue to allow the country to fully recover from the lasting economic impacts of the COVID-19 pandemic.