In news that will delight Chancellor George Osborne, the International Monetary Fund will upgrade its growth forecasts for the UK. While the IMF are predicting higher rates across the board, the UK will be rising much higher than other countries.
Reports suggest that the IMF’s estimate for UK GDP growth will be 2.4% in 2014. This comes after their forecast back in October that said growth would reach just 1.9%.
This would put the IMF in agreement with the Treasury’s Office for Budget Responsibility own predictions. The Office for National Statistics says the economy grew by 0.8% in the third quarter of the financial year, while growing that same amount in the second. Forecasters are now expecting a similar increase in the last quarter. If this comes to pass, 2013 will have seen a 1.4% growth in the economy, the fastest increase since 2010.
This prediction from the IMF would be seen as a turnaround and a positive boost for the Chancellor. Only last year the IMF called for the UK Government to slow down on their austerity to help support the economy. This was when the country possibly faced a triple-dip recession, which eventually never materialised.
While this may bolster support for Osborne, Labour have been suggesting that the recovery is not being felt by the ordinary person. They claim there is a cost of living crisis and have been making calls for increased competition in the banking and energy industries and calling for more companies to offer a living wage.