12 April 2023 - IMF confirms its view about the UK economy
The IMF reiterated its view that the UK economy will be one of the worst performing major economies. It expects the country to experience a contraction of 0.3% during 2023, although this is a slight improvement over its previous outlook. It expects a marginal rebound in 2024 when it believes that the economy will grow by 1%. The continuing high price of gas, although it is now receding, the rise in interest rates and trade performance still affected by Brexit are cited as the main reasons for the decline. The Office for Budget Responsibility agrees that the economy will contract by but by slightly less than the IMF prediction. It estimates that there will be a contraction of 0.2% but no recession. The Chancellor of the Exchequer, Jeremy Hunt, struggling to find any positives in the IMF report, commented that the UK has upgraded its own forecasts for this year as well as 2024 and 2025. He pointed out that the IMF has praised the Government for its current economic policies that will eventually lead to sustainable growth. Hunt also announced a change to the makeup of the Bank of England’s Monetary policy Committee yesterday. Silvana Tenreyro will leave in early July. She will be replaced by Megan Greene. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.