The International Monetary Fund said it expects the UK to avoid recession in 2023 and maintain positive growth.
The IMF, which predicted that the UK economy will contract by 0.3 percent in 2023, changed its expectation to 0.4 percent growth last month. The IMF predicts that UK GDP will likely grow by 1 percent in 2024 and then by 2 percent in both 2025 and 2026.
In the statement made by the IMF, it was stated that flexible demand due to falling energy prices encouraged a positive outlook, albeit “suppressed”.
British Finance Minister Jeremy Hunt said the “work is not done yet” in tackling inflation and improving the UK’s growth prospects. He underlined that high inflation and high energy costs are challenges at the UK and international level.
The IMF report implied the recent collapse of Credit Suisse and the turmoil in the US, indicating that the UK has weathered the latest global banking stresses well.