Why good news from IMF narrows the path for Labour

Tories are heading for another ‘voteless recovery’ but Labour has lost some ammunition, says Sean O’Grady

Rachel Reeves has lost some ammunition, but will it make any difference to Rishi Sunak? (Reuters)

Britain will no longer have the weakest economic growth in the G7 this year, according to the latest outlook from the IMF. The expectation for growth in output of goods and services over the course of 2023 has been significantly upgraded, to +0.4 per cent, against the previous forecast, last month, of a shrinkage of 0.3 per cent. However, inflation “remains stubbornly high” and poses real economic risks, the IMF noted.

Is this good news for Rishi Sunak?

Mostly. It comes after the Bank of England also upgraded its forecasts, with governor Andrew Bailey declaring that inflation has “turned the corner”.