IMF Raises UK Growth Forecast

IMF Raises UK Growth Forecast.

The International Monetary Fund (IMF) has raised its forecast for the UK economy. The last time the IMF raised its predictions for growth was in April 2012. The new forecast now stands at 0.9% up 0.2%.

This is a good sign that the economy is improving, however the forecast was cut in April this year to 0.7%. This led to many criticising George Osborne, asking whether he should change his policies.

Our View

The fundamentals for the UK economy are good.  QE has been maintained and interest rates have been suggested by the Bank of England will remain at their record low for the time being.  This means that stock markets should remain bouyant although volatility will remain as the UK reacts to mixed news from the rest of the World.

The UK has implemented austerity measures across the board and combined with infrastructure spending, economic stimulus in the business sector and housing market as well as a weak pound making British exports cheaper abroad.  GDP in the UK is down meaning that it is likely to only grow.  UK growth forecasts will be low on Monday as we expect GDP to be down, so the only way is up.