The UK economy is experiencing a stronger-than-expected growth spurt. As a result, the British are likely to avoid a recession, reports the International Monetary Fund (IMF). The fund significantly raised its estimate as households spend more and thanks to better relations with the European Union.
Falling energy prices in the UK are leading to economic growth of 0.4%, reports the IMF. This makes the IMF more positive than last month when it had forecast a rate of 0.3%. If the economy does indeed grow at 0.4%, the UK will drop out of last place among the G7 economies with the lowest economic growth, according to the fund. This means that British economic growth is reaching, among others, Germany.
The global economic watchdog has already warned households that interest rates are likely to rise further and stay high to ensure inflation is tackled. The government of British Prime Minister Rishi Sunak will enter the fight for the next elections positively in the perspective of faster growth, also because a reduction in taxes is foreseen.
Elections
The Conservatives are already far behind the opposition Labor Party in the polls, due to the skyrocketing inflation the country is struggling with. Weak economic growth, strikes in the public sector and rising taxes also play a role in this.
Sunak is trying to restore the government’s economic reputation after the problems caused by former Prime Minister Liz Truss’s economic plans. As a result, the value of the pound fell sharply and the bond markets were disrupted.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
