The International Monetary Fund (IMF) says the UK economy will be the fastest-growing in the G7 this year.<\/p>\n
It says the UK will grow 2.9% in 2014, up from a January estimate of 2.4%, and will see growth of 2.5% in 2015.<\/p>\n
Overall, the IMF says the global economy strengthened at the end of 2013. It forecasts global growth of 3.6% this year and 3.9% in 2015.<\/p>\n
But it sees risks in emerging markets and warns of low inflation in advanced economies and geopolitical issues.<\/p>\n
The predictions come in the IMF’s latest World Economic Outlook, its bi-annual analysis and projections of economic developments.<\/p>\n
Last week, the IMF’s head warned that the global economy could be heading for years of “sub-par growth”.<\/p>\n
Christine Lagarde warned that without “brave action”, the world could fall into a “low growth trap”.<\/p>\n
She said the global economy would grow by more than 3% this year and next, but that market volatility and tensions in Ukraine posed risks.<\/p>\n
Ms Lagarde also urged more action to tackle low inflation in the eurozone.<\/p>\n
Exports disappoint
\nThe IMF says that growth has rebounded more strongly than anticipated in the UK on the back of easier credit conditions and increased confidence.<\/p>\n
But it cautions that the recovery has been unbalanced, with business investment and exports still disappointing.<\/p>\n
For instance, an external shock involving further growth disappointment in emerging market economies could spill over to the euro area, it says.<\/p>\n
That, in turn, could spread to the UK through “financial linkages”.<\/p>\n
“In the United Kingdom, monetary policy should stay accommodative, and recent modifications by the Bank of England to the forward-guidance framework are therefore welcome,” the report added.<\/p>\n
“Similarly, the government’s efforts to raise capital spending while staying within the medium-term fiscal envelope should help bolster recovery and long-term growth.”<\/p>\n
In January, the IMF said it was increasing its UK growth forecast for 2014, from a previous 1.9%, to 2.4%. That figure has now been raised again.<\/p>\n
Responding to the 2.9% growth prediction, a Treasury spokesman said it was “further evidence that the government’s long-term economic plan is working”.<\/p>\n
And they said the next stage in creating “a more resilient economy” was through “support to businesses, savers and exporters”.<\/p>\n
BBC<\/p>\n","protected":false},"excerpt":{"rendered":"
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