IMF doubles growth forecast for the UK

THE International Monetary Fund yesterday doubled Britain’s growth forecasts for the year in the biggest upgrade for any major economy.

The IMF said UK output will rise by 1.4 per cent this year – twice the rate predicted in April when it warned Chancellor George Osborne was ‘playing with fire’ by pressing ahead with his austerity programme.

The forecast was also higher than the 0.9 per cent predicted in July and the IMF expects growth to accelerate to 1.9 per cent in 014.

Chief economist Olivier Blanchard, who was behind the ‘playing with fire’ claim, conceded he was ‘pleasantly surprised’.

Britain’s economy is now the fastest growing among the European members of the G7 of the world’s richest nations.

In its World Economic Output report, the IMF noted signs of an improving economy consistent ‘with increasing consumer and business confidence’.

The Treasury said: ‘The IMF has confirmed the UK economy is turning a corner.’ But it acknowledged ‘the recovery cannot be taken for granted’.