Global growth forecasts upgraded but UK could be left behind

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Global growth forecasts upgraded but UK could be left behind

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By Lauren Howells

The International Monetary Fund has upgraded its global growth forecasts for 2018 and 2019 by 0.2 percentage points to 3.9%, which it says reflects increased global growth momentum and the expected impact of the Donald Trump’s tax reforms. 

Global leaders reportedly warned not to be complacent 

At the launch of the IMF’s latest World Economic Outlook report in Switzerland, the IMF’s managing director, Christine Lagarde, reportedly warned global leaders against being complacent and said that the “time to repair the roof is when the sun is shining”. 

“The pickup in growth has been broad-based, with notable upside surprises in Europe and Asia.” 

The WEO report said that the growth had been “broad-based, with notable upside surprises in Europe and Asia”. Growth rates for many of the euro area economies had been marked up, “reflecting the stronger momentum in domestic demand and higher external demand”. The IMF’s Eurozone growth forecast is 2.2% in 2018 and 2% in 2019.

Outlook not so good for the British economy

Conversely, the IMF is expecting the British economy to slow and is forecasting growth in the UK at 1.5% in 2018 and 1.5% in 2019. This is a 0.1 percentage point downgrade for Britain in 2019.

These figures predict that Britain’s growth may not keep pace with other advanced economies, such as Germany, which has a growth forecast of 2.3% in 2018 and 2% in 2019 and France, which has a growth forecast of 1.9% in 2018 and 1.9% in 2019.

Global growth forecasts upgraded but UK could be left behind

Lord Jim O’Neill reportedly tells BBC UK should be prepared for more “economically optimistic 2018”

However, in an interview with the BBC on Monday, former Conservative Treasury minister Lord Jim O’Neill, reportedly said that Britain should be prepared for a more “economically optimistic” 2018 because of the good news surrounding global growth.

He reportedly said that predictions surrounding the negative effects of Brexit were probably going to be “dwarfed” by “more positive figures”.

According to the BBC, Lord O’Neill believes that the growth forecasts for the UK are likely to be upgraded. He reportedly admitted that he wouldn’t have previously thought the UK economy “would be as robust as it currently seems” and said that some parts of Britain, “led by the north-west” were doing much better than many appreciated.

He told reporter Kamal Ahmed: “As well as this crucial fact, the rest of the world is also doing way better than many people would have thought a year ago, so it makes it easier for the UK.”

Earlier this month, London Mayor Sadiq Khan reportedly warned that a ‘no-deal’ Brexit could lead to “a lost decade of lower growth”, following the release of research the mayor had commissioned from Cambridge Econometrics.

By | 2018-05-30T10:08:38+00:00 January 23rd, 2018|Economy|0 Comments

About the Author:

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After completing her law degree, Lauren decided to follow her passion for writing. She regularly contributes articles to CLNews on personal finance and general consumer topics.

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