The International Monetary Fund has downgraded its forecast for UK growth next year by more than any other developed nation and warned that the world economy is weakening.
The Washington-based organisation predicted on Monday that growth in the UK will be just 1.4% in 2013, compared with a previous forecast of 2%. This year the situation will be even worse and a previous forecast for 0.8% growth for the year has all but evaporated.
The IMF said in its latest World Economic Outlook that GDP across the UK – which is currently in recession – will increase by just 0.2% in 2012, beating Italy and Spain, but behind France and Germany.
Christine Lagarde, the former French finance minister who heads the IMF, has warned European leaders they must press ahead with further measures to deal with the euro crisis or growth forecasts could prove optimistic. » | Phillip Inman, economics correspondent | Monday, July 16, 2012