IMF WARNS ECONOMY IS IN ‘A DANGEROUS PLACE’
THE International Monetary Fund ( IMF) has slashed its growth forecasts for the UK — warning that the global economy is in a “dangerous new phase”.
The UK will see gross domestic product grow 1.1% this year (compared with the IMF’S last economic report in April of 1.7%) and by 1.6% in 2012 (compared with 2.3%).
The forecasts for the UK in 2011 fall behind projections for Germany, France, US and Canada.
The downgrade is the latest blow to the UK’S recovery prospects after the influential think-tank OECD cut its estimate f or growth.
But the gloomy UK outlook is unlikely to deter Chancellor George Osborne f rom his stiff programme of spending cuts and tax reform.