IMF raises UK growth forecast but trade and output data disappoint
The International Monetary Fund partially reversed its previous cut to its UK growth forecasts yesterday, but weak manufacturing figures showed that the economy remains deeply unbalanced.
The Chancellor George Osborne's Treasury team was quietly enjoying the IMF upgrade, which came just a few weeks after it sharply cut UK growth forecasts for this year, and followed a flurry of good economic news. However, the prediction of a 0.9 per cent growth rate this year remained below the IMF's projection of 1.1 per cent as recently as last October, while it left next year's forecast unchanged.
The fund's chief economist, Olivier Blanchard, repeated his call on the UK, and other key advanced economies to rein in austerity measures.
Meanwhile, a double whammy of bad UK news – from the industrial sector and a widening trade deficit – gave further cause for caution. Manufacturing output shrank by a bigger-than-expected 0.8 per cent in May, disappointing economists who had pencilled in a rise. Melanie Bowler, the UK economist at Moody's Analytics, said it could take until "close to the end of the decade" for manufacturers to make a full recovery as output lags 13 per cent below its pre-recession peak.
The UK's goods trade gap with the rest of the world widened to £8.5bn in May.
- 1 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 3 Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Revealed: How the world gets rich – from privatising British public services
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...