Monday, April 11, 2011
Move along; nothing to see.
The International Monetary Fund (IMF) has cut its 2011 growth forecast for the UK economy to 1.75%, its third downgrade in a year. The cut cements the widely held view that Britain faces a year of low growth and rising unemployment with little prospect of a job-creating recovery until later in 2012. It will increase the pressure on the chancellor, George Osborne, to boost Britain's growth prospects. The Washington-based agency said on Monday in its half-yearly World Economic Outlook that its lower growth target, down from 2.1% last April, was the result of the UK's "necessary" front-loaded fiscal consolidation which will dampen domestic demand.