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Britain To Make 'stronger' Exit From Recession

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Britain's emergence from recession in 2010 will be stronger than previously thought, according to the International Monetary Fund (IMF).

The IMF now expects the economy will expand by 0.9 per cent, ahead of the 0.2 per cent growth in GDP it estimated three months ago.

The IMF lifted forecasts across the board due to the impact of action by several governments as well as signs of firmer house prices, recovering consumer confidence and a pick-up in world trade.

The UK will lag behind the 1.3 per cent growth expected for the US although it will perform more strongly than the Eurozone, where the IMF predicts a 0.3 per cent rise in output. Ben Bernanke, chairman of the US Federal Reserve, recently said it is highly likely the world’s biggest economy has already emerged from recession, though he cautioned that recovery will be slow. Yesterday, new figures revealed that US GDP fell by 0.7 per cent in the second quarter, lower than the 1 per cent previously reported and was also better than the 1.2 per cent contraction which Wall Street had expected.

Gordon will be pleased, more ramping just what we need.

It appears that you can solve a debt crisis with more debt.

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Is it me, or do the IMF say whatever the f*ck they like about any old sh*t?

I reckon they've got two hats, one with country names in, the other with a random study & blind draw every day.

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The world recession is now over and the global economy is expanding again, the International Monetary Fund said as it raised its growth forecast for the global economy back above the 3pc mark next year.

The IMF used its key World Economic Outlook to say that the biggest slump in global output - indeed, the first outright annual fall in worldwide gross domestic product since the Second World War - had now come to an end.

However, it warned that the recovery would be sluggish and far from painless - particularly for the developed world and the UK.

Britain will shrink by 4.4pc this year, the Fund said, cutting its previous forecast by 0.2 percentage points.

The contraction is significantly greater than the 3.5pc predicted by Alistair Darling in this year’s Budget and is also greater than the average contraction of 3.4pc among industrialised economies.

But in a boost for the Government, the Fund also upgraded its forecast for next year, saying the UK would grow by 0.9pc, rather than the 0.2pc it previously slated. This nevertheless remains below the Treasury’s own forecast for 1.25pc output growth.

The WEO said that across the world, economic output would fall this year by 1.1pc before bouncing back to 3.1pc next year.

The report said: “The triggers for this rebound are strong public policies across advanced and emerging economies that, together with measures deployed by the IMF at the international level, have allayed concerns about systemic financial collapse, supported demand, and all but eliminated fears of a global depression. These fears had contributed to the steepest drop in global activity and trade since World War II.”

However, it adds: “Complacency must be avoided. Despite these advances, the pace of recovery is expected to be slow and, for quite some time, insufficient to decrease unemployment.”

The report said that the UK labour market, in particular, will suffer as the recession starts to weigh on activity. It said that the unemployment rate would climb to the highest level since the early 1990s, leaping from levels of just over 5pc in 2007 to 9.3pc by next year.

It's a happy clappy news day, rejoice in the jobless recovery.

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