The International Monetary Fund (IMF) predicted on Tuesday that Britain would have the slowest growing economy among the G7 countries next year after a likely change of government, Reuters reported.
The UK’s GDP would grow by around 0.6 per cent in 2024, the IMF reported, down from a previous forecast of 1.0 per cent. This is less than the 0.9 per cent and 1.3 per cent growth expected for Germany and France respectively.
This outlook reflects the Bank of England’s need to maintain higher interest rates to cope with the country’s rising inflation rate and the impact of a spike in energy prices last year, the IMF notes.
The economy’s forecast growth of 0.5 per cent in 2023 was the second weakest among the G7 countries after Germany.
Prime Minister Rishi Sunak is facing pressure from the Conservative Party to reduce taxes and stimulate the economy ahead of next year’s national election. The opposition Labour Party is leading in public opinion polls.
