Good track
Britain’s Chancellor of the Exchequer said the IMF sees it as “putting the UK economy back on track”. This is a very different picture to the previous October IMF meeting. His predecessor, Kwasi Kwarteng, left that meeting early amid a barrage of criticism.
However, the latest data do not show that the British economy grew in February, writes the BBC. Earlier this week, the IMF also forecast that the UK economy will shrink by 0.3% in 2023. This will make it one of the worst performing major economies in the world.
Recession avoided
According to Hunt, it is ‘other finance ministers who say Britain is back’. He said this in response to a question about whether the current UK economic performance undermines his positive message. After months of strikes, price hikes and labor shortages, the UK economy has just returned to pre-pandemic levels.
“I hope for faster growth and lower inflation in the coming months”
The finance minister says it is important to avoid further fueling inflation by wage increases. According to Hunt, Britain has “so far” avoided a recession. “I’m hoping for faster growth and lower inflation in the coming months,” Hunt said. The growth of the economy should be stimulated by measures to help companies hire more staff and increase investment.
To trust
However, confidence in the British economy was dented by Prime Minister Truss’s short-lived government last year. Former Finance Minister Kwarteng presented an economic strategy that included massive tax cuts without explaining how they would be financed. And the current banking crises could also hamper the growth of the British economy.
However, Hunt believes the UK has a “very robust and resilient banking system” and is in a better position than it was before the 2008 financial crisis. “I am confident in the resilience of our banking system,” said Hunt .